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In Options->Audio you'll see settings under "Track change" and "Stop Seek Skip" that control fading. Make sure those are set for gapless.
You're saying "fades" but I also have to wonder if you're just hearing some silence. If you turn the volume up, can you really hear the music gradually getting louder, which is a fad in?
I ask because there are a couple of other settings on that same screen that be involved. You might need prebuffering, or you might need a larger value for "Play silence at startup for hardware synchronization". It sounds counterintuitive, but some hardware needs a bit of a warning before it starts playing music, otherwise the first bit of the track will be cut off. This behavior is common in devices connected by USB or HDMI.
So try messing with those settings.