It sort of is....ugh. It saves a relative and full path. I've not seen any documentation on behavior, but it appears to look in the 'relative' path first. This way, if you transfer an entire project folder (several assumptions made there, of course) to a USB to work at home, etc., all of the references will behave properly. The XML files in the DataShortcuts folder are ONLY used when actually creating the reference. Once reference, those XML files are completely ignored (as far as i can tell, anyway.) I've been working this way for quite a few years, now.
@tdivittis you describe how this works very well and can confirm how you summarized it.
I believe it simply sets that shortcut folder to current when you open the drawing back up. It is quite nice that it sets it for you, don't get me wrong, but beyond that, it has no effect on the referencing, at all.
Yep my fault...I misread @Anonymous post...I thought he wanted to have a quick way to know which DREFs are in the drawing he's in. If he does that step and then creates the DREF, in essence he'll have a quick reminder of which Shortcut Project the DREFs in the dwg are from. I agree though, that it does nothing with regard to the DREF links already created.
Side Note: We leverage the Manage Tab\Manage Data Shortcuts option in C3D 17 and 18 at times during design. We find this interface useful because you can re-associate an existing drawing DREF to a different (updated) DREF source within the project. I agree with your caution about this, but sometimes in a Design setting, there are different phases and as the design evolves, different source files may be created to separate design approaches and it's nice to be able to just update the DREF behind the scenes to keep everything that's associated with original DREF in Production Drawings the same. Anyway, I show a quick .gif below showing this interface. Have a good evening.

Michael M. Carlson
Senior Civil Designer
CADD Manager
AutoCAD Civil 3D Infrastructure Design Professional
AutoCAD Design Professional
