1. Yes, during the spin time I did save the file locally and it was doing the same thing. I even had the old copy of the same file and blue circle was there as well.

2. There were definitely changes to our database. That is why we were reloading our configuration to get the latest version.

3. We did try to reload configuration again in that file because after reload  the file was acting normally but after sync, close and reopen file-the issue was still active. Then we tried to reload config and save as a new file on BIM360 and it was doing the same thing... We gave up after that. Over the weekend file was back to normal.

I wish I could know what was happening on the back side 

Of course during that process, we were clearing cashes and journal files