I want to do this permanently for every new project, although it is not a problem if I have to do it manually for each project, hoping it has to be done only once.

 

Pretty Old Daw i believe that question was answered though yrs back, try search in here for resolution

 

You might know it, but fast way is to load all files you wanna work with into Cubase, then open pool (CTRL+P on Win) and select all files, then uncheck the timestrech/musical mode box. But I'm sure in Cubase 5 you can also find something in the preferences as to "load by default" or something. I'm on 7.5, I assume it's a little different there. Good luck!

 

I have searched and couldn't find anything.
Everyone is pointing to the musical mode, but it just doesn't feel right to me; presonus studio one has a clear option when creating a new song of 'stretch audio - yes or no'. I was expecting to find the same option in Cubase.
Can someone clarify the situation with Musical mode; what does it imply; what files: the imported ones, or all recorded files? Can I turn it off initially when I create a project and not worry anymore or do I have to know more?

 

It's covered extensively in the manual​

 

Musical mode in the pool CTRL+P...when you turn off that on sample, it won't be streched.