Depends on the DAW. In LPX the midi signal path is such that the midi plugin slot is AFTER the point where midi is recorded to a region. Then during playback, the region data is sent through the midi plugin slots before hitting the instrument slot. It would be nice if LPX provided a way to insert midi plugins in the midi signal path before recording to the region, but they don't. Anyone reading this, please submit feature request.
So in LPX this is often the issue with creative midi plugins, that IAC must be used to send the output from the plugin out and and around and back into LPX to record to region. Sundog is not a plugin, so its a bit simpler, you don't have to do the "out and around" part. on the other hand, if it were a plugin then it would sync with the host better and save with the project.