I thought I knew what the Legato setting was doing but I don’t think I do. What is it for? I don’t see it in the manual. When it’s on and set to Play Quantize there is a long delay after pressing a chord pad.
Hm, not sure whether these two are compatible. By (my) definition, Quantize tries, depending on how you set it, to put notes in the “boxes”, aligned to the beginning of the beat and/or set the length to the length of the beat, too. Legato tries to obtain a smooth transition between the notes. In piano roll you can have a similar effect either by starting the note before the beat begins and/or to finish after the beat ends.
Maybe you have a long delay because your notes are quantized. to the beginning and the end of a beat.
Maybe I am wrong, but this is how I understand it 
No, I understand what Legato is normally but the setting is confusing. There is no reason for there to be as long a delay as there is even if it is quantizing to the beat.
Try this - Add a progression to section C. Turn on Legato/Play Quantize in Preferences. Bind the chords and play. (No Performance). Is there a delay for you?
Yes, I am observing the same behavior, consistently about 1/16 delay between pressing the bound key and hearing a sound. I don’t think it has anything to do with quantize, because no matter how randomly I press the bound key, the delay is always (subjectively) the same. If the delay were caused do to quantization, occasionally I should be right on beat.
Curisouly, when I run this experiment (same conditions in Scaler) in piano roll DAW play mode, there is no delay in the recording across tracks (I routed Scaler output into MIDI in of another track - green piano roll is Scaler, blue is the destination track catching the Scaler chords).
Ok, I tried binding the Section C play button with “DAW Sync” on, so it would play the chord progression in section C with DAW transport started. And then I see a slight delay in the piano roll MIDI recording also…
This had me very curious, so I investigated further, using a different DAW. In Maschine I can slow down tempo to 1bpm, which lends itself well to forensic efforts 
This is what I played in…
And this is what was recorded in Scaler’s internal “Midi capture” (copied over to piano roll).
It does appear here that it is quantizing. But I do notice that the sound is often delayed, or sometimes plain not audible at all. I do wonder if there’s some latency with the sound engine, unrelated to the MIDI note timing?
There is a delay on external sounds as well. Thanks for checking.
Legato is not a specific mode, it is simply the default playback mode when nothing is selected. It used to be called Perform “OFF”. When played the chord notes will fill the space to the next chord or for the duration you defined or the full length of your trigger-note.
Play Quantize will delay the start of the chord to the “next beat” or “chord duration” depending on the preference selected in the Side Menu.
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Seems not how I would describe what’s happening. The delay is there even from the first beat. I’ll experiment but probably leave it off mostly.
Yes, that’s what my experiments within Maschine confirmed.