Best way of converting AAF to Ableton Live Sets, and back: AAF Bridge.
AAF Bridge converts AAF and XML Timelines to Ableton Live — and back

AAF is the standard interchange format most NLEs and DAWs export. Ableton Live has no native AAF import or export and delivering a timeline to or from Live Sets meant stems and a manual rebuild. AAF Bridge closes the gap in both directions. On import, an AAF becomes a native Ableton Live project. On export, a finished Ableton Live set is written back to AAF:
Sample-accurate clip positions and source offsets
Fades and crossfades, clip gain, volume automation, pan and markers carried over
MXF-wrapped audio converts to WAV automatically
Collect-media option gathers all assets into one movable folder
Crossfade compensation for NLEs/DAWs that map crossfades symmetrically at the joint
Also reads and writes Premiere XML, FCPXML and FCPXMLD
A plain-text report per conversion lists what did and didn't transfer
It's honest about the limits: time-stretched warped clips are flagged for consolidation rather than silently rendered.
AAF Bridge is available now for macOS and Windows: US$49 one-time, no subscription, fully offline. The free demo is the full app and converts the first 120 seconds of any timeline, with no signup.
More information, free demo and demonstration videos: https://aafbridge.com
Demo: