I would recommend either disabling your subs' crossovers or setting them as high as possible to allow the 1070 to handle all of the bass management.

The 1070's digital bass management works in all cases except for stereo analog bypass (which, since it's a pure analog passthrough, skips all of DSP section where bass management takes place). The 7.1 analog input is separate and is governed by the switch on the rear panel - "bypass" applies no bass management, "HPF/LPF" applies an analog 80Hz crossover, and "DIGITAL" applies the digital bass management.