I did some testing last night with different parachute multipliers. I was still having the problem with the multiplier set at 1e-05 (0.00001). I tried a fresh DRE install, no other mods, and still had this problem. They seem to cut if the shockwave is greater than 0 (e.g., 1 or 2 C), which seems to occur between 200 and 300 m/s. It's easy to recover only the capsule by waiting for atmospheric braking to slow you down below this speed, but I haven't been able to recover a larger rocket stage because it can't drop below the threshold speed before impacting. Also, it appears more noticeable in FAR (I assume because the air drag is modeled differently, causing less braking for dart-like rockets). FAR also changes the default parachute temp multiplier to 0.25, but the problem still existed. Thanks for looking into this!