In AutoCAD 2016 you can now control the display of layers for objects in xref drawings that were not set to “ByLayer,” for layer property updates in the host drawing. A new system variable, XREFOVERRIDE, enables you to control the display of the xref layers: set XREFOVERRIDE=1, and the xref objects will behave as if their properties were set to “ByLayer.”
To help distinguish layers in xref drawings from layers in host drawings—and because xref layers cannot be selected in the Properties palette—xref layers are no longer displayed in the Properties palette. Xref layers are still displayed in the Ribbon layers list but are now shown in gray text.
View this and other drawing and editing enhancements in the demo video.