[Elecraft] KX3 and JT65 (aka digital modes) ALC "problem"

[Stephen M. Shearer]

I am not new to JT65.
I have an ALC “issue” in that I have no ALC, but I can change the computer drive and watch the RF power change from zero to 3 watts (power setting – but not over 3w) AND I am making contacts (and with similar signal strength both paths)…  
I am working Europe and I am heard in eastern Europe (5300 mi) via “reporter” – SO, it “is” working.
BTW, I have tried different mike settings all the way to full drive.
I am connected direct from the PC to the KX3 via the optional cable set.
I also took the time to flatten the RX and TX EQ settings. 
Didn’t help the ALC “issue” but the flatter RX can be seen by the JT65 waterfall – as it is flatter as expected....

I “guess” if it works, don’t fix it…
I will try RTTY or PSK, too and see what it does to ALC.
What do others see who are running JT65 on your KX3?
Does JT65 have a “voice” that the DSP/ALC doesn’t “see”?

After I wrote the above and posted to the KX3 group, (with no reply)... Today I tried PSK using WinWarbler and found:
Same problem, until - for some reason -  I lowered the mike drive (earphone output) from 60 to 6 and ALC appeared!  
I guess I didn't change the computer drive enough.
It appears that ALC goes to zero when over driven?  Feature or problem?
Things still "seem" to work as I made a 20M 4W PSK31 QSO (poor copy on other end - running 20W).
And a couple of JT65 contacts...

Question, does DATA mode use the TX/RX EQ?   It would be nice to leave the EQ's set for SSB and have things flat for digital modes.  
I guess I need to do some more reading.

73, Steve WB3LGC