Hello.

I have created a simple rectangular object in inkscape and have attempted to bend it using the path effect editor. This works fine until I attempt to rotate the object. When I rotate the object the object distorts terribly. What am I missing here? Is there a way to apply a path effect that I am not aware of?

Hi.

You would need to transform the control path too.

Simple workaround:
group the path (Ctrl+G) and rotate the group instead;

or
bruteforce:
convert object to path (Ctrl+Shift+C).

I knew there would be an incredibly simple workaround for this!

Thank you very much. Converting the object to a path worked perfectly.

This really confused me because I had already converted the object to a path before I applied the bend effect. I assume inkscape views a path object with an effect applied to it as a separate object that needs to be converted to a path again.

You are welcome.

Just a note to add.
Lpe stands for live path effect -meaning, you can edit the effect's settings at any time it is present.
Compared to extensions that apply the effect to the paths in one go, this works "live".
By grouping, you can preserve the editability of the bending.