I have been dealing with the exact same issue. What I found that works is clicking the actual fade, then in the viewer window, drop the soft fader to about 7. When I did this, the flare went away, however now it appears that the text fades a few frames sooner than the other text. It’s still a hassle, but I would much rather deal with a quick fade than that flare issue. Hope this helps!
Cheers.