I rarely use Magic Motion, so this may be normal, but while looking at a problem for another user I applied Magic Motion and clicked the 'Apply to All' button. When I did that it also applied a fade between all images. Since that is not what I wanted I had to go back and remove the all. If I added a video clip it did not add a fade to it. I also noticed that if I clicked on 'Reset' it removed the motion effect, but not the fades.
I really don't use that feature, so it is not a problem for me. Just pointing it out if it is not the desired behavior.
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CORNBLOSSOM