From various posts by Steinberg and VSL employees on various forums and support posts, here's the situation as I best understand it.
There was an issue internal to Cubase which has been fixed. However this won't do anything until VSL update VE Pro, which they cannot yet do. The VST2 version is incompatible with ASIOguard. The VST3 version VSL cannot update until Steinberg updates the SDK, which has no time frame to be done. So until that unknown time, users are unable to use VE Pro with Cubase 8 without severe side effects. Its probably best to disable ASIOguard from VE Pro in the plugin manager until this whole issue is resolved. Unfortunatly it looks like this whole issue won't be fixed any time soon.