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Looked at your picture,to allow SVRT for a single file some box has to be checked in setup?
Yes, that box can be important. Pref > Produce > Allow SVRT on single.... I do not know all the camera footage that it might apply to, I do know that it's a must for all Canon footage of mine. If unticked, PD will use SVRT on the first clip prior to a transition between video clips and then everything after the transition will be re-encoded. When ticked, only the transition region will be re-encoded as required and then the next clip will get SVRT applied again, hence no re-encoding.
It appears to be just a trial and error setting with your own footage and timeline and one needs to monitor effects and adjust accordingly. The green/red SVRT track in the timeline is of little use as it's not correct in these situations, you need to monitor computer load to determine what was actually done during the produce stage.
For me I also see "unique" situations, for instance a transition applied between two video clips will cause all remaining clips to be re encoded when unticked as I indicated above, however, if the same transition is applied between a video and a picture, then that's okay for some reason, SVRT will continue to be used on the video after the pic even when unticked. If the transition is applied both into and out of the pic, then it's a must that the option is ticked again.
As I indicated, if it works for one's timeline and footage and they are happy with the results, it can be very beneficial, it is just sporadic.
Jeff