Ok saw this on the XDA forums, had to stop in here. The problem is I believe the implementation of the DSLR Controller only interfaces with the Canon side of the firmware code. Thats the problem.
Magic Lanterns side is entirely separate with RAW recording. Magic Lantern bypasses the entire Canon recording process, and reads and writes directly to the CF card in RAW format. That's why you can switch off the liveview and gain faster read write times.
Unless Chainfire specifically updates DSLR Controller with a fork that addresses the Magic Lantern System specifically and not just the canon system you can probably expect this to continue.
Right now whats happening is DSLR Controller is attempting to pull and signal the Canon Firmware, which is currently being bypassed by magic lantern for speed and stability, since magic lantern hooks that code and pulls it into the code they've created, then it also pulls the power to send that signal and code over usb 2.0 to the phone. Resulting in code that shouldn't be working and hasn't been debugged, running concurrently along with magic lantern. Its like its trying to do double duty here not to mention the data squeeze trying to send image over usb 2.0 v_v I can practically hear the digic processors screaming their terrified screams.
Hah but anyways. You've basically got the phone addressing the old firmware hooks meanwhile Magic Lantern may or may not have taken them and integrated them into their programming and hooked them into other processes differently than the stock Canon Firmware, causing miscellaneous errors and system slowdowns. Especially with RAW.
RAW needs alot of processing power, every ounce of it that the DIGIC processor in the Canon cameras can give. All I can say is try dropping the resolution, liveview off, cf card tweaks (im a little behind on the most current builds but i think they still apply), external audio recording, as cropped as you can make the sensor, and you may get some stability with the least amount of dropped frames but I wouldnt hold my breath on that one.
Also ive heard mixed things about leaving the SD card in and having magic lantern run from that, or leave the SD card out for the Mark III have to experiment with that one. You'd honestly just be better off getting something like this and calling it the day.
http://www.atomos.com/ninja/Sorry for the info dump. Theres just really alot to it and its difficult to explain in a way thats understandable in few words.
The next time i start recording without switching the cam Off first, i get a still frame/image on the app... phuhhhhhh
Btw I do see that as pretty clear evidence that Magic Lantern is taking over the Canon Firmware processes as soon as RAW starts.