With all that's been tested here, my issues are still in effect. I add 2 separate clips of 10 seconds in length, I set the editing option to either ASK ME or GENERATE FREEZE FRAMES and when I add a 4 second fade between the two clips, they immediately overlap so that the entire timeline length that started out as 20 seconds, reduces to 16 seconds. The only way I can get the fade to work without overlap is to leave a small gap between the clips then do a separate fade out and fade in for each clip. Another thing I noticed while doing this is that if I fade out the clip for 4 seconds, it has gone completely black after only 1.5 seconds. If the fade out changes to 6 seconds or 2 seconds, the fade out happens proportionately early i.e. in a 2 second fade, it's gone black in less than 1 seconds.
I also installed VideoPad on another freshly installed computer and got the same behaviour for both a new project and this one that I saved as a portable project.