I have created a block from a selection. I have then later created more items on my CAD page using that block, then later yet, moved the objects to a new layer. I noticed that while the object has accepted being on the new layer, the color hasn't changed to the new layer's color. I can only get the line color to change if I go into the block itself and move the individual segments of the block to that new layer, then save the new block (which, by the way, I can't save over the existing block?!?!)

In the sample file attached, you will see that the block item in the 3 o'clock position is in layer 0, while the rest are in "Vent Holes" layer. If you make layer 0 hidden, the one block is hidden (like it should), but the block item refuses to take on the layer's color even though the block's color is "By Layer"