I also noticed this on another AV forum.
I confirm that discrete code 060 does activate the sub in bypass mode, but I found that if you are in bypass mode when you send the code, you have to exit bypass and then re-select bypass before the sub becomes active.
The problem I found, which is obvious really, is that in bypass mode there is no LFE control from the SP1.7. Prior to using this code I had set up the sub's x-over and level on the processor, which is probably the preferred method. I am now experimenting to find a level and x-over setting using the controls on the TLE1 itself which will allow me to reajust the sub's level on the processor, so that the sub's output is the same whether in bypass mode or not.
Currently the settings are as follows - on the TLE1 the level is set at half-way between Min and the first mark, and Freq set at 45Hz, while on the processor the sub level is set at 10dB and the x-over freq at 25Hz, and X-Bass is set to ON using FB1 front plus TB1 centre and surround speakers, all set to Large. This setup appears to work OK.