Propagation conditions can be set in the DEE template for every state, refer to below picture from DEE template:
According to the software implementation of VR5, the propagation condition can be enabled or disabled for each of the states, but it will always set to static fading.
In order to have Rician/Rayleigh modulation take effect, before you start playing DEE, set all 24 paths to Rayleigh:
After all 24 paths are set to Rayleigh, the fading condition in DEE template will take effect