If cues start/end partway through bars, they are padded with cue-sized rests up to bar boundaries or up to the next played entry, whichever comes first. This ensures it is clear to the player how the rhythm of the cue fits within the time signature and how it relates to their existing material.
By default, full-sized bar rests also appear throughout cued passages. This makes it clear that the performer does not play the cued notes.
Full-sized bar rests are automatically positioned according to the stem direction of the notes in the cue. If cues use up-stem notes, bar rests are positioned below cued notes. If cues use down-stem notes, bar rests are positioned above the cued notes.
You can choose not to show bar rests alongside cues. For example, this can be appropriate in some jazz scores, or in scores where the cues are provided as potential passages for doubling.
You can adjust the vertical position of full-sized bar rests individually using Rest pos. in the Notes and Rests group of the Properties panel.