It's working for me.
Show a screenshot of your Timeline panel---or, better, a screen-capture video of you going through your process.
My first guess is that you're setting an offset that is too long for your selected layers, in which case After Effects will do nothing when you try to run the command.
What OS are you using?
Can we see a screenshot of your timeline?
I cannot get this to break... Works fine for me. Try setting all layers to 20 frames and set the overlap to 0.
Is your comp long enough to hold the sequenced layers. Lets see, I don't know how long the layers are but if the overlap is 9 seconds (wow that's allow dissolve) Then you need 10 times the length of your total footage - 90 seconds for a comp length.