when i have a block instance linked from another file it is not possible to set the “Layer State” to “Reference”. it will always set back to “Active”.
am i doing it wrong or is this a bug?
I can confirm this. Although if you select reference then it acts like reference. But when you select blockedit it again it offers always “active”, the dialog doesn’t retrieve the correct stored value. I always reselect “reference”, and it works.
But this is a bug indeed, with a workaround.