I am sure that there are both Cut and Fills on the job, but if we are just talking the Cuts then you could also do the following if it is a corridor model
- Use the Existing Ground Surface Model as your Design Surface - add it as Finished Grade in a Corridor Template Instruction
- Add the Finished Grade Model (the grey line in the pictures of your post) and make that a Material Layer "Base of Subgrade" or similar wording - use a surface instruction for that also
- Add the Work In progress as a Material Layer called "Work In Progress" again as a Surface Instruction and in this one use the Clip to surface and clip to the Finished Grade (base of subgrade) in the instruction. That should crop it at the finished grade interface and then you can assign Materials above the WIP to get the Red Volume inside the Finished Grade Envelope
I have mocked the example up in the video here - hope that it may help
Download Video
Marians suggestion to use the Merge Surfaces command can also work - I guess it really depends on all of the scenarios for Cut and Fill that are going on in these models, looking at a single section is only one of the scenarios - and to really answer the question you need to see the whole model and what you are trying to achieve,