I am trying to import a simple PNG with some blurred edges. The moment I drop them in Shotcut they look super bad, like it is trying to fill he opacity feathered area.
That was a design decision for our Track compositor. We do not automatically blend the tracks with a black background. This design decision is an optimization that removes an entire composition step for most use cases that already have an opaque track on the bottom.
I get what you mean but this should be made more clear somehow. I was about to switch from Shotcut to Davinci Resolve because I genuinely thought it was a bug.