Inserted transition "grayed out" on split clip

Greetings,
Pretty new user so excuse the question...if repeated, tried to search but found nothing.
I am in advanced tools on my editor and split my video clip and inserted a transition. When I go into my precision editor, I see the transition inserted in the split but it is "grayed out" and not in white like it is usually. Am I missing a step here or doing something wrong? I can't make it work? I do have right next to it, a photo cut-away. (I wanted to split the video, insert the transition before the photo).
I can make the transition longer but again, it's grayed out and I can't see it on the final project.
Thanks for any suggestions and help.

Again, excuse the newbie here.
Yes, the split clip where I inserted the transition, is there and I can make the transition larger but how do you make the split larger? Is that what you are asking? I want the transition to come before the cut away photo (about 5.6 sec), then play back to the video. The video before is about 2 min in length before the split, or does the transition only work by previous by frame size?
Also, what file do I make a copy of where my movie is held (in preferences when you click on movie folder) to save a copy of this in another area on my HD so if I mess up one copy of the movie, I can go back to the original one and insert it back into the iMovie folder? Thanks.

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