WILL NOT NEST WITH MORPH CUT
If a morph cut is on a transition it won't nest
Peter Torpey commented
Even when nesting clips that share the Morph Cut, the clips will fail to nest. It is not just the case that only one of the transitioned clips is being nested. Other transitions nest correctly. The nest operation fails with no error or warning. After naming the nested sequence, nothing happens. No entry is placed on the undo stack, either, as Undo will revert the action previous to the nesting attempt.
paul wedel commented
Same problem here // just want to put a zoom on an interview with two clips transited by a morph // can't do it! cheers pw
Morph Cut is a transition. You have to nest at least the 2 clips that it transitions between.