Hi Lollia, I'm glad you posted this, only by yourself nonetheless! It was helpful for me to see your process. I had the same result (no lines in the Edit Response Audio box, therefore no seeming way to generate LIP files manually). Also, when I added the lines to my mod folder, they DID work in-game (hooray)!
One thing I did stumble across, and I hope this might help others, is that, in Mod Organizer 2, by clicking on the "gears" icon in the upper left, that actually is "Modify Executables." For the Creation Kit executable, in the arguments line (which should be blank otherwise), you can type in "-GenerateLips:<YourMod>.esp and it will automatically generate LIP files for your given mod.
Regards,
Jeff