bypass valve

Yes you will, but the water does not go into the heater, it just bypasses it.

My manual valve configuration routes the cold water inlet to the hot water outlet at the tank. So in my case, the cold water will run through the hot water lines.

Yes you should... all you have done is disconnected the hot water tank from the flow.

It must operate this way so that you can winterize with antifreeze in all your hot and cold water lines EXCEPT the hot water tank!

Yep - you know its working because your "hot" water won't be hot.

I guess I have a problem ,in bypass mode I get no water in the hot side of any of the faucets.

If you have a single valve bypass, the valve may have been installed backwards.

Thanks Dutch. I will have to check and see. It flows when I take it out of the bypass mode. But. no hot water.

In my bypass mode, I turn one valve to allow connectivity between the hot and cold lines, and another valve to close water access to the tank

My system only has one valve at the inlet side of the water tank(cold side)

If you only have one valve on the inlet side then you are shutting off water completely to the hot side. I would look again to make sure your not missing a valve that is currently closed between the hot and cold water lines.