I thought I had this working the other day, but it's now impossible.
I can get an output using ASIO drivers, or WASAPI Exclusive, but I need to be able to play my S88 Mk3 alongside YouTube videos for learning, so any exclusive driver is a non-starter for my needs. I can get it to work using the VSL Synchron player or the Analog Labs player, but not Kontakt. I only own a few (free) instruments from VSL and Arturia, yet I have a full Komplete Kontrol Standard installation which obviously gives me much more choice of instrumentation.
I can make it work inside a DAW, but I don't want to start up a DAW every time I need to play a piece. Is this a bug in Kontakt 8 or is there some other setting that I'm not aware of?