System Information
Operating system and graphics card
Blender Version
Broken: at least 2.75.1 (Official release)
Worked: at some stage.
The graph editor displays a wiered zig zag pattern when an envelope modifier is applied to a baked fcurve.
Add a keyframe to default cube, go to graph editor, bake to sound, then add an envelope modifier, bingo zigzags, even if the modifier is muted. Only effects the display, not the actual curve.