Your assumptions are all correct. 100% wet means you only hear what is playing from the looper’s buffer and in this case you are hearing the new audio that was just recorded to the buffer.
At the moment, there is no way to prevent hearing what you are recording except by involving other units. For example, I personally hardly ever use the punch toggle (which I plan to get rid of) but instead modulate the dub parameter like this:
- external gate > ADSR > Looper(dub)
This lets me record only when the gate is high. This same control structure (fed with the same external gate) could be use to close a VCA that is placed after the Looper.