Assuming you are trying to use the Black/white fog video as the transition, that is the clip to which you must apply the Alpha effect ensuring that the effects direction arrow is correct and the video track placing is in the correct order ie like this
I mean something like bellow video. The fog/cloud should appear in the Screen, Fog fill in the screen so the screen will become white. my next scene foreground is white so it will match.
Did you try the same set up as the example I posted, I did not have a fog transition so used the nearest one I had.
Note:
fog transitions and Alpha are the worst type to work with as you nearly always get an 'odd effect' ie with black edgings appearing - these can be minimised adjusting the Video level slider
the fog transition must go from solid black to solid white to work correctly - you may also find this tutorial helpful.