Others have reported absence of transitions after the updates, on this board and on the FCPX board. It is something that Apple will need to address.
In a pinch, you could put the clips in the upper timeline, above a black background, and use the fade handles to apply a transition similar to cross dissolve. The fade handles are revealed in the upper left and upper right hand corners of the clip when you put your cursor onto the clip. Hold down the Option key to move the fade handles independently of each other.
You could also put your photos and videos into the Photos app, and create a slide show with them where you can add from a selection of transitions. Then export the slide show as a movie and import into your iMovie project.
Another option would be to create your slide show in the KeyNote app and export as a movie and import into iMovie.
I realize that it is aggravating to resort to workarounds like the above, but in a pinch it is better than nothing.
-- Rich