Chad,
I agree it is a bug. But it appears to work reliably if you follow the reference guide instructions - click the "new" icon in the Project Panel. It does NOT work if you use the File -> New option unless the project panel is selected. It does work if you use Right click -> New Item in the Project Panel.
https://helpx.adobe.com/premiere-pro/using/creating-special-clips-synthetics.html#create_a_color_mat...
Black Video is just above the Color Matte instruction.
When it works, you see the "New Synthetic dialog box" (actually called "New Color Matte" and "New Black Video") first. This box allows setting Width, Height, Timebase, and Pixel Aspect Ratio. If this box does not appear, you are still presented with the box to create the Color Matte, but get no box to create Black Video. In any event, the actual clip is only created if the video settings dialog box appears.
It doesn't need to use the Project Panel, since it uses for the default video settings the last sequence you created; it is not "looking at" any item you have selected. You can set the default duration, but not the video settings.
If you file a bug report, put a link here so other users can upvote it.
Stan
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