Problems with using Overlap transitions are mainly caused by users who are accustomed to using Cut transitions (also known as Seamless Transitions) from legacy Motion Bro products. The problem lies in the misunderstanding that these are completely different types of transitions, both technically and visually. Here are the main differences:
Overlap Transition
Overlap transition effects transform the content only for the clips selected in the timeline, so you need to select both clips that you want to connect through the transition. This approach has a considerable advantage: during the transition, you can simultaneously see the two clips (first and second) that you have connected.
Cut Transition
Cut transitions are created from a group of adjustment layers, and their effects transform all content below the transition layer. Thus, you do not have to specify the clip on which you want to add the transition. This is convenient, but at the same time, it has a disadvantage: during the transition, it is impossible to display both the first and second clips simultaneously. You can only see the first clips up to the Cut marker and then, after the marker, only the second clips.