This is probably not a bug, and I know how to use the effect, but I'm trying to understand it, so please bear with me.

I hadn't used stablization in a long time and had forgotten how I did it in VMS11 and 13.
I see that 13 and 14 act just the same. But let's concentrate just on VMS14.

I click on the white fx and select VEGAS Stabilize from the menu and I see this...

Please educate me: Why is this process different from the other effects?

I follow the steps and the stabilization works well.

Yet, despite the success, it seems that in some cases fx is not highlighted to indicate that and effect is applied. I have to follow the steps above to see the Stabilize screen is there. 

I don't want to tie up the forum too much since I know how to use the feature; but if there's a technical explanation I'd appreciate the education.

Thanks!

P.S. Just for kicks, you might enjoy this GoPro fun that I stabilized: And yes, there's still some jello effect even with Rolling shutter correction selected.
Maybe since I specified Light correction.