I have not used the Automate to Sequence function for a long time. I made a post about this several years ago. This is the only way that I have been able to make it work. If you add one item to the Timeline, the Automate to Sequence button is highlighted. You need to set the Time Ruler to the end of the first video added to the Timeline. Then you can highlight the other videos and use the Automate to Sequence button.
I have tried this many times and it does not work unless I place the first video on the Timeline.
I'm not sure it matters, but since a sequence must exist, it is just as easy to make it with the first clip, then place CTI at end and select all the others and add.
But when I create an empty sequence (or create a sequence from a clip and delete that clip), I can add clips to it. ATS is not greyed out.
I can use the icon or the menu item.
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