Title Safe as it is displayed in FCP's Canvas is for the format being edited. In your case you saw 16:9 title safe. This has absolutely nothing to do with 4:3 title safe. So Title Safe didn't let you down, this was operator error.
You need 14:9 Safe Markers to overlay into the 16:9 timeline in order to "protect" your 16:9 graphics for 4:3. Someone recently posted about some free markers that you can download and use as a filter set.
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