The Merge Clips function still doesn't seem to be working properly. When two clips are merged, there is a jump/glitch in the animation where the transition region of the second clip began. Please see the following video example:

https://youtu.be/laoedRjdriQ

Notice that, before the clips are merged, there is a smooth transition from one to the other. But after they are merged, there is an abrupt jump between two of the keys generated by the Merge Clips function.