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I've been using this feature smoothly until today when it saddenly stopped working. Any help?
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In your screenshot, in the 3 dot drop down menu, you'll see "Generate text-based editing transcript." This means that you have created a static transcript. When you have a static transcript, you cannot use it like a source transcript for test based editing. But, as you can see, you can use it to set in/out in the timeline. And you can use the lift/extract in the Program Monitor to make the edits.
Whether you should do that, or "generate text-based" and use the commands in the transcript tab, depends on the stage of you edit and any other workflow relevant factors.
Stan