The lack of the fade option is a horrible change in Movie Studio 13. It slows down the process of editing enormously. I am going back to version 12. I wasted the upgrade money. Sony, please fix this with an update soon. It is not a minor problem and it greatly hinders the workflow.
Not much of a problem if you alter your workflow. I use markers to indicate were I want fades and where I want cuts. I then go through creating the cuts then go through again, after selecting the fade tool, making all the fades. A little inconvenient but I can deal with that until a change is made. Still a fabulous editor for the price.