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Is there a way to fade content aware fill in and out? For example, could I use it to take the letters off a sign and have the letters fade in and out of existence? If not this way, is there another way to do this?
No need to make this complicated. You simply use a duplicate layer and animate its opacity.
Content-Aware Fill generates an image sequence that is on the layer above the original footage. The only thing on that layer is the filled hole.
All you have to do is turn off the mask used to create the hole and animate the opacity of the CAF image sequence. It takes about 10 seconds.