You are not mistaken. If you initiate playback on the X3 through the Browse Files header in the UI then you will not get gapless playback. if you initiate playback through the Categories/Album headers then you can get gapless playback. This should be corrected in the next firmware upgrade. hopefully.
Gapless does not work for me at all, either via Browse Files or Category. Using ALAC files. A real nuisance. Hoping firmware fixes this.