There are no updates for you here. It is still on the list.
The recommended workaround is still to reopen the parent file to update the linked blocks and regenerate the layer properties correctly.
The code that reads linked files when opening the main model includes some “book keeping” for creating the runtime layers and layer properties represent the linked layer overrides correctly in the main file.
The block update code sees that the linked file layers exist in the current model and decides incorrectly in favor of the existing properties over the layer properties from the linked model. Here is where the defect lies.
Saving the current parent model with the linked block and reopening it forces Rhino to use the the code that will update the layers properly allowing you to see the new layer properties correctly.
From my naive user perspective, I would assume that using “update” via block-manager would simply mean, reloading the entire linked block as if it has not existed before. I don’t understand why the code would be looking for anything where it needs to decide to keep anything. As I mentioned there is another problem where referenced layers are not deleted from the layer list even when the block is deleted from the document. I guess that is related. So manually deleting the block via BM and re-inserting it still won’t update the layers correctly.
Reopening the parent file is also not very convinient of course,
so I worked around it with GH, as the Elefront code seems to produce the desired result.
I can update the block with a single click on “Update” on the first node.
maybe that helps other people experiencing this issue