When split sequence is cut and later prtion is shifted time-wise, the later portion restores the cut area. I could not remove the cut area at all. It did not happen without Lumentri effect I presume.
I am no sure if this problem is specific to the beta version. (No time to duplicate the problematic issue.)
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Thank you for taking the time to write this up! Is this an issue with After Effects or Premiere? I ask as the post ended up in the After Effects forum.