I'm afraid that this is the way the unit works, and with good reason. If you use a parallel effects loop, you want the unit to pass no audio when it is bypassed – hence KILLDRY. But, this of course means that the second unit will have no input.

There is no solution to this that I can see – you can either have KILLDRY on or off (your choice) and you have to live with the results. This is not an Eventide issue – basically having multiple effects in a parallel effects loops is probably not going to work.

You may want to move one of the effects to before the amp, if you want to keep the other one in the effects loop.