This actually sounds fine to me (fine meaning - as designed).
You might want to play with corners and move the puck around a bit though as that changes the filter resonance (which sounds very high in the soundfile). I believe resonance is maximum at the top of the display. If you find a setting you like, you can hold the brake (top-left) for a second and it will freeze at those settings.
The delay is linked to the space control in step, where the delay amount & decay time for the drum sounds are linked together. You’ll have to make the percussion sounds even shorter if you want to 100% eliminate the delay.