There HAS to be a way to do this!

[Bob Pierce]

I can make the clips independent, make them offline, then open each one in the viewer, create a subclip, then drop the newly created subclip into the sequence replacing the original, then recapture. This is still only slightly more tedious than simply re capturing the stuff manually, but it does work.
Bob

[Jeremy Garchow]

Don’t make the clips independent. Simply select your timeline in the browser, Then right click (or control click) on the sequence and choose media manager, create offline.

Set sequence to whatever codec you want.

Uncheck include master clips

Check delete unused media

Check use handles (say 3 seconds)

Uncheck include affiliate clips

Click OK.

When the new project opens up, right click on the ‘Master Clips’ bin and choose batch capture.