weather splitting the end of fade off is normal or not.
maybe something in the code has changed to prep for ripple editing (im just guessing)
but even if it did, this isn't a show stopper, just grab the clip from the same place you grabbing it from only be aware of that clip line in the clips header.
I was able to produce the same thing, but again this is because you are actually highlighting the clip underneath and grabbing on the wrong side of the line in the clip header. not only could I produce the same thing, I saw the same thing in your video.
just try this again and drag it but only drag it from the right side of the line, not the left side.
its not going to curb your work habits, your simply moving your mouse over less that 1 inch.
When you overlap clips, there is a translucent effect that helps us see the clips border (under the other clip)
that's what I mean by grabbing to the right of this line. (grab the clip on the right, not the one under/on the left.
This isn't random strangeness, its all about selection. Sorry for your problems :-)
I hope this gets you back to making great music.