See picture No.9. Just sliced Event has a “Direct Offline Processed Mark” in the top right corner. This means the Event refers to a processed audio.
“Audio Event” is not an actual audio file. You can’t slice an actual audio file by slicing an “Audio Event”.
https://i.imgur.com/CAWawyH.gif (Cubase Pro 9.5.30)
Time Stretch “Continue”
https://i.imgur.com/OkPzI8Y.gif
Time Stretch “New Version”
https://i.imgur.com/j22utzy.gif
Earlier Version
https://i.imgur.com/OguH7jb.gif (Cubase9.0.40)
https://i.imgur.com/Olowx3Y.gif (Cubase8.5.20)
https://i.imgur.com/Zo9KYPw.gif (Cubase8.0.40)
https://i.imgur.com/PpKmuJH.gif (Cubase7.5.40)
https://i.imgur.com/OrbQ138.gif (Cubase7.0.7)
https://i.imgur.com/J0RVMlf.gif (Cubase6.5.5)
I found that there is a case that shift doesn’t occur in different tempo. So I think this is because internal calculation error.
Another workaround (Without overlap, shift doesn’t occur.)
Personally I always apply “Bounce Selection” and “Replace” to the sliced Event for safety.