<< Have creative made a patch to solve this then?? >>
Patch to solve what? It's working as intended, as far as I can see. "No Effects" just means: don't add any global reverb/chorus, etc, since the game will tell you where and when to do this on its own. (As compared to "Play legacy game" settings, where it basically adds "metallic room" reverb or some such to the WHOLE game, at ALL times).