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If you create a new sequence, and set that to frames, it works.
Ok I can confrim that works but you cannot toggle between timecode and frames display.
Creating a new sequence just to do this is not acceptable. Why is there an option in the project settings to change it if it is not acknowledged?
Is there an official problem area that I can report this to as it is not working as it should as far as I am concerend. Little things like this and not being able to copy clips to target tracks is starting to make me wish we didn't bother upgrading.