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If you click Transcript from Sequence,
you will not be able to select a language, the transcribed text is in English and not in the language of the video.
To select a language, you can only click on the video in the project window, not on Sequence.
If you want to select a language from Sequence, you can only do a static transcription.
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Can you post a mp4 instead of this unreadable gif.
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Why do you have to "fix" something that wasn't broken?
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This is a very bad workflow change. Why overcomplicate things?
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You can access the old captions workflow by first switching to the captions tab in the top of the text panel and then clicking the create captions button.