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Yypically I don't have issues with these labels, but since upgrading to 2016 SP2 it's becoming an issue. Why is the dragged state looking as if it is masked or offset from the structure?
It has something to do with the Structure style block defined in User defined part.
When I change it to Use outer part boundary it works correctly.
When I change it to Civil3d default block Storm Manhole it works correctly.
Solved! Go to Solution.