Manual construction may be the way to go. But you can test the crossfade effect using these steps...
1. Overlap the clips
2. Position the cursor at the middle of the overlapped area
3. Right-click an audio track and apply the Crossfade.
The duration should be at least as long as the time from the cursor to the end of the clip being faded out.
Below, that's .500. If it's a higher duration, a longer fade will be applied to the clip being faded in.
4. Right-click audio track 2 and Split Selected Track.
5. Delete the segment to the left of the split on track 2.
Double-click this video to enlarge it...
Crossfade1.mp4