Here is a simple procedure to test the functionality of *internal* MIDI -> Audio conversion:
Launch Metro, all ports initially set to 'Internal', first track selected.
Open Plug-Ins Window and Effects Window, drag 'Apple:DLSMusicDevice' into Effects Window. Port of the selected track changes accordingly. (if not, you may change it using 'edit ports')
With Graphic Editor insert some notes. Hear the notes on inserting and on playback.
Choose File>Mix Audio Tracks. Audio track is generated.
There is only one minor oddity: The Effect Window says with big letters 'Select audio track ...' which is not quite true in this case