Cubase 12 cross-faded edits are stuttering

Cubase
1

Loaded a Cubase 11 Project. Made some cut edits to a track, cross-faded ('X) the edit points. Playback stutters and drops audio across the edit points.

Remove cross-fades and playback is normal again.

Tried manual fade in/out - section with fades added cuts out completely.

Remove fades and playback is normal again.

Tried to bounce:
‘There was a file error during…’ Pressed ‘Cancel’ - Cubase 12 hangs.

Playing same Project in C11 - works perfectly.

2

I did more work on this today.

Switching off the new ‘Phase-Coherent AudioWarp’ option solves the stuttering. It occurs when arriving towards an edit point. Removing the audio event after the edit point also solves the stuttering.

I can reliably recreate this problem by switching the marker on/off. I have isolated a Project file that recreates the problem and can provide this if required…