Just to make clear that this is how I understand it works, I maybe wrong.
BLE Midi connection can only be between a peripheral device and a central device, two distinct roles. Some devices (i.e. CME Widi Master) can change role when necessary. When two of these devices connect, one be in peripheral mode, the other central mode.
Some devices probably can only have one role, probably peripheral. RK008 BLE On is peripheral role, RK008 Party On is central role. So a peripheral can connect to the RK008 when in Party mode, but on just BLE On.BLE In/Out is separate and controls the direction of the Midi signals and has nothing to do with the role (peripheral or central).
I assume that that the Android Midi+BTLE app probably uses the central role to find the other devices (aka peripherals) and thus cannot connect to another central role device (i.e. the RK008 in party mode).
Just my two cents,
Albert