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It's strange, I even went so far to creating a whole new fla, to test this and I get the same result - it works on the timeline, and in the swf - not. Maybe it's a bug, I'm not sure.
One way to work around this, I found out, is to convert the text to movie clip, set blending to "layer" in the properties panel and after all this done - animate.
P.S. 2 other ways: convert the text to graphic symbol (the most appropriate in this case) and set antialiasing to "for animation". Or, place another keyframe after the first tween's end keyframe.
Strange but true....it gets worse....I have tested it so much that I have found inconsistent behaviour eg. add a layer and the problem goes....add a second new layer and the problem returns.....
However, having spent more time on it this morning I have come to conclude that I need to forget trying to make "text" fade. The only consistent behaviour comes when I convert the text to a movie clip symbol before I place it on the stage.
I then apply the fades to the instances of the symbol and not the raw text. Adding and removing layers does not then affect the fading of the other layers.
All the other posts suggesting "static text" and "dynamic text" or clicking " break apart" may work once or twice but not with repeatable consistency.
I have put an example of this (it is fade_example5.fla) here