I noticed the new captions do not allow subtitles from an embed sequence to pass through. It seems, for captions to be exported they must live in THAT sequence. Is this true? are there work arounds, perhaps plans to change this etc?
I assume you are referring to nested sequences. A sequence with one or more caption tracks NESTED in another sequence will "pass through" the caption on screen (only the Active track), but only for burn in.
As long as the caption and nesting sequence as the same length, you could export a sidecar from the original sequence.
But you can only embed the captions in their original sequence.
This is not how captions used to work. Why this change?
We tend to do a full length video that we also split into shorter chapters. With this change captioning becomes oh so much more time consuming as we have to mess around with captions for all chapters as well as the full length sequence.