Auto Crossfades and cutting

When I set up auto crossfades, they work as expected. Until I start cutting the audio.

Example:
I edit a voiceover. I want to turn down breathing and other unwanted mouth noises, but not completely delete them. So I cut the start of the breath, cut the end of the breath and set the clip gain to about -15 dB.

Auto crossfades are already set from the beginning, but I hear clearly a hard cut.
I noticed this behavior years ago, never really cared about it. Now I’m doing audio book with 20+ hours of recording and it really bugs me off. Is there something I’m missing?

What are your settings in the project menu?

Check out this video from 2:52 Speed up your editing in Cubase with autofades - tutorial - YouTube

Like I said, I set up auto crossfades and they work as expected. Until I start cutting the audio