Ableton Live step sequencing not triggering properly

Imo, from a musical standpoint, a bassline with 16th notes as you describe wouldn’t really sound right. A 303 line would typically have a gate length of 1/32, i.e. 1/2 of a sixteenth note. A moog bassline with slides would also be staccato. You also can’t use release portion of the envelope on successive notes as there is almost no space between the notes.

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Meanwhile I wrote to support as well. They are very friendly and pretty responsive but for now I got the same answer as you, recommending the workaround via polyphony.

Anyway… let’s wait for the things that are to come.