When G Sharp is placed in serial mode (front button parallel mode LED not lit) and also with kill-dry switch engaged the effects engine seems to be lost. Reverb is still present. Switching the unit into parallel mode (front LED now lit) restores all Effect engine settings and reverb is still present as well. When kill-dry is disengaged the unit operates properly (signal has both effects and reverb applied) in both serial and parallel modes. is this expected?
Yes it is normal (or at least it was decided it would be so). The effect engine actually works, but only the effected signal will go through the Reverb block. Depending on the mix level for the effect engine, the resulting signal could make you think that the effect is lost.
Kill-dry and serial routing aren't a very useful combination anyway (imagine 2 stomp boxes in serial and kill-dry mode), and parallel routing should be preferred when in kill-dry mode. Parallel is the only routing that will still feed the dry signal to both engines, which is a necessary condition for producing a good effect.