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This is probably an easy fix and I have no clue what I messed with but when I draw a line or any object, no matter what layer I have it set on, it will display as yellow instead of "by layer". Any help is appreciated.
With no item selected, on the Properties palette, on the Design tab, set the Color property to ByLayer.
-OR-
Type COLOR at the Command: prompt and press ENTER. In the Select Color dialog, choose ByLayer (button on the right side, just below the dialog center.
You must have changed the default color for new objects from ByLayer to Yellow.