Changing Sequence Resolution Corrupts Direct Manipulation Overlay

Changing a sequence's resolution through Sequence Settings causes the Direct Manipulation overlay to become desynchronized from the actual position of the selected clip.

The underlying media is displayed correctly, but the Direct Manipulation controls remain positioned as if the sequence were still using its previous resolution. This makes the overlay inaccurate and difficult to use until the sequence is refreshed.

Steps to Reproduce

1. Create a sequence and add a clip.
2. Open Sequence Settings.
3. Change the sequence resolution (either increase or decrease it).
4. Return to the sequence and select the clip.
5. Enable Direct Manipulation for the clip.

Expected Result

The Direct Manipulation overlay should immediately update to match the clip's new position and scale after the sequence resolution changes.

Actual Result

The Direct Manipulation overlay does not update correctly after the resolution change.

• When increasing the sequence resolution: the footage scales down as expected, but the Direct Manipulation overlay remains positioned where the footage was before the resolution change.
• When decreasing the sequence resolution: the footage scales up as expected, but the Direct Manipulation overlay shifts inward, appearing inside the footage instead of aligning with its boundaries.

In both cases, the overlay no longer represents the clip's actual on-screen position. Reproducible every time.

Workarounds

I've found several ways to temporarily resolve the issue:

1. Enable Direct Manipulation before changing the sequence resolution. If Direct Manipulation is already active when the resolution is changed, the issue does not occur.
2. Switch to another sequence and then return to the affected sequence. This immediately refreshes the overlay and restores the correct alignment.
3. Close and reopen the affected sequence. This also refreshes the overlay and fixes the issue.

Additional Notes

The second and third workarounds suggest that the Direct Manipulation overlay is not being refreshed immediately after the sequence resolution changes.

There is also another issue related to the third workaround: in some cases, closing and reopening the sequence causes Premiere Pro to fall back to software rendering when position adjusted. The timeline render bar turns red. This appears to be a separate bug, but it is consistently encountered while using this workaround.

System info
    Application: Premiere Pro v26.5 build 77
    OS: Windows v10.0.26200, RAM: 31.82 GB GB, CPUs (logical): 24 
    GPU: Rtx 3060 Ti  Nvidia Studio Driver ver. 610.62