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Select both the new lozenge and the grey rectangle. Use the Objects>Paths>Intersect menu item to create a shape where the two objects overlap.
Move the Grey item over the top of the black lozenge and apply a Gaussian Blur using the Effects Palette,
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Select both the new lozenge and the grey rectangle. Use the Objects>Paths>Intersect menu item to create a shape where the two objects overlap.
Move the Grey item over the top of the black lozenge and apply a Gaussian Blur using the Effects Palette,