I think I figured it out.
1. I had to set the "show all lines as solid" option in "project settings/Display options" to "no".
- I had messed with that in the past, so there may be some fixes in the latest releases.
2. Also, I changed the .lin file (acadlt.lin in the folder: C:\ProgramData\Trimble\CADStyles)
- copied the "dashed" linetype definition to:
*DASHED-jm,Dashed-jm __ __ __ __ __ __ __ __ __
A,.5,-.75
I increased the Pen Up (negative value) to .75 from .25.
This helped really define the dashed line.