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I cut out the frames that contained the selection wheel but they appear on the transition. I have tried cut more frames from each side with no effect. Anyone had this happen?
move the second cut to V2, slide it backwards above the clip in V1,
apply the transition to the clip on V2, the transition out point should
be on the same timecode as the clip on V1 out point. Doing it the
way you are doing it will keep the frames required to do the transition,
before and after the cut point, so you will have to calculate how long is
your transition and the durations of both clips according to the cut point.
There are many ways to get that ocrrectly done, but if the issue persists it
might be due to the fact that you recorded using OBS at variable frame rate?
if that is the case, transcode your footage to constant frame rate using Handbrake.
Also, what renderer are you using from project settings? software only or GPU acceleration?