I’m not sure if this is a @dale but the tag can’t hurt.
Still evaluating V6. When an inserted block has a layer name that matches a layer name in the parent file, changes to the layer color and material assignment in the child file do not update in the main file.
Create a file that will be used as block def’n. It must have an identical layer name with the main file. Default is a good example since it’s already there. Put some kind of geometry on the layer. Change the layer color to anything and assign any material. Save/close.
In main file, insert the file as linked referenced block definition.
Use BlockEdit on the linked block.
In the block file change the layer color and/or material of the Default or whatever layer you created. Save / Close.
Back in main file, the material and layer color do not update.
If you BlockEdit again, and change the layer name in the linked file, save/close.
Now you get the correct color and material.
I rely heavily on linking parts library in and being able to change materials on the linked files. Having to change the layer name to Housing2381 to get the material to update probably not the intended behaviour.