Hi @BBP-Arch,
I think I may have figured out what's happening. Since the materials fade visually for me here on my machine, but they don't on yours, it does seem to be an environment-specific issue. So, I tested on a different machine I have here, and the materials would not fade there, except when they reached the 0-5 range on the slider. (I tend to have more graphics issues with that machine than the one I initially tested on.)
However, when I rendered the image, it reflected the correct Image Fade settings, even when they did not display onscreen.
I checked the Graphics Configuration settings (3DCONFIG command), and discovered that the Advanced Material Effects option was unchecked.
When I checked this option and regenerated the drawing, the Image Fade settings were visible in the model onscreen.

Could you try this and let me know if makes a difference?
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