After searching the Web for answers, I still have no idea why I am unable to catch MIDI output from Microtonic. Settings in Microtonic are correct - Pattern engine transmits MIDI OUTPUT.

Ableton Live 12, Mac mini M4, Microtonic AU latest version.

Anybody has this working?

The VST 2 version has the best MIDI support. If you can switch to it, I would recommend trying it out.

ThX Fredrik, noted and I will try.

Dowloaded the latest installer, it's not installing any VST versions, only AU.
Please direct me to the correct installer for VST2 version for MAC OSX.

It's the correct installer, it contains all three variants that are all installed when you run the installer.

VST2 ends up in this system folder, so make sure you include that path when scanning for plug-ins.

/Library/Audio/Plug-Ins/VST

If you have all formats enabled in Live, it will look like this. Pick the one with the "VST" icon (without the 3)