It works fine.
If you would like to keep all of the original layered edit just the way it is in the “original” (Seq. 1) project, but laid into the “new” (Seq. 2) timeline:
1. Open Sequence (timeline) 1.
2. Mark your In-point and Out-point on Sequence 1.
3. Drag the Icon of Sequence 1 from your Browser to your Viewer (left) FCP window.
4. Open Seq. 2
5. On Seq. 2, Turn ON ALL of the “Auto Select” buttons (NEXT to the little padlock icons) on ALL the tracks that you wish to “transfer” to.
6. Position the PLAY head (Timeline cursor) on EXACTLY the frame where you want the transfer to begin on Seq. 2 and leave it there.
7. Make sure all of the track selects from Seq. 1 MATCH those on Seq. 2 ( V1>V1, V2>V2, V3>V3…).
8. Hold down the “Apple” (Command) Key…
9. …as you drag the image of Seq. 1 from the Viewer and drop it onto “Overwrite” in the Canvas Window.
That should give you all of your tracks, exactly as they are, in Seq. 1 over to Seq. 2.