Yes, I can reproduce what you've got.
But this situation makes sense to me, because the compound clip I have is already full-size. It can't make a compound clip longer than you created it- you need to either make it longer or move it.
The way I solve this is to use the Trim tool (T), select the compound clip and slip it to the left (say -5) - so now there's enough frames to increase the duration of the Transition (by Ctl+D+5).
You might need to edit the compound clip to make the last clip 5 frames longer - to keep the same duration.
But it makes sense to me it can't go automatically stretching compound clips because it can't (and shouldn't) know which clip, of many, it should operate on, inside to achieve it.
edited several times to get it to sound right (it's always the way)
Luis. Certainly I know about "handles." However, I STILL appreciate your response. Thank you.
And, of course, a dialogue box appears informing me as much-- telling me I don't have enough media "beyond the clip edges."
But, it ALSO gives me the option to "overlap" or "ripple trim" my media. (Thus shortening the overall length of my project timeline.)
But, even THEN I cannot change the duration of the transition. If you reproduce what I have on my screen grab, you will see what I mean.
See those little vertical bar icons on each end of the transition? Those are handle controls. Grabbing the left one will control the handle on the right clip and vice versa for the right one. You add more handle on the right (outgoing) clip by grabbing the left control and dragging right. You add more handle on the left (incoming) clip by dragging left.
Once you've added more handle, you can expand the transition by grabbing its edges and dragging away from the center.
The "bowtie" icon can be used to "roll" the transition with respect to the two transitioned clips. If the transition is in the main storyline (or in it's own timeline), double-clicking on the bowtie will drop you into the precision editor (and back when you've finished.)