[Paul Whitfield]

Thanks I was having the same issue.
I saw your post on the Adobe site.
Glad I found it here too.
Now I know what that little icon does.
Switching it solved the problem.

[Paul Whitfield]

I too am having TC problems with PPCC 2017 .1.2 on a Mac and ADOBE TECH SUPPORT SAYS “YOU MUST TRANSCODE YOUR FILES TO MP4 CODEC for it to work correctly in Premiere Pro.”
There is definitely a TC problem with Premiere Pro but Tech Support wont admit it. I sent them a file to test and it worked on their windows os but not on a Mac. They did at first say it was a bug but then called me right back and changed their story to “its your files, transcode them.”

My files are QT uncompressed video at 23.976 created in After Effects.
The TC from the files work perfectly in FCP7, QT player, and Resolve but in PP things go astray.
They usually start off ok but if I add a marker, the TC displayed for the marker does not match the TC displayed by the Source monitor. The difference is random. The TC overlays showing source TC is wrong. If I open the Modify-Timecode menu the original TC has changed. Revert does nothing. Manually changing the TC to be correct does nothing.

So I trash the project. Trash the files on my work hdd and copy the file from a backup. Start again and after a few minutes working in Premiere, yep wrong TC is back. But only in Premiere. After Effects is fine with the files, so is Bridge, FCP, Resolve, QT.