Modified a clip in action center to add reply and slo motion.

I then added a PIP object on another track. I have keyframes set for opacity, so near the end of the clip, opacity changes from 100% to 0%.

When I edit the object and navigate through the timeline, I can see the object fade away. However, if I play the clip, the object immediately disappears at the 100% keyframe and does not fade. The checkboxes for "easy in/easy out" dont have any effect.

Not understanding why this is happening but it seems related to the "action center" clip. If I move this PIP object to a regular clip, the keyframe fade works fine.

Attaching some screenshots.

Thank you