No, that entry looks ok.
FILE "01. What I See.flac" WAVE
Quite often I see CUEs of the form
FILE "01. What I See.wav" WAVE
When, in fact the file is a FLAC. I have to edit those entries to point to the flac file before MC will import.
And, sorry, I'm an idiot, as I do have the solution, but got sidetracked by cue editing for some reason!
The solution is this - import the cue file - MC will always import as a single file... but you can then split into tracks by using Convert Format, using the options - Convert to same folder / Replace original file on disk and in library. MC will then split the file for you into individual tracks!
Although, I've just gone back to your original question and see that this may not be the solution for your problem as it only works if MC is showing the tracks, but that doesn't seem to be the case for you. Sorry! Stumped.