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Not all the layers in my DXF file are showing up in ModelBuilder and the layers that aren't visible are the ones I need to build my model. I can I workaround this issue or fix it.
How can I fix a damage or corrupt DXF file?
If the file is opened in ArcMap the file will automatically be split into the layers that make it up (points, polylines, polygons, multipatch, and annotations).
What you need to do is left click once on the layer you want to create a shapefile for then right click and choose Data > Export > and choose the option to export the file to a shapefile (geodatabase feature class is selected by default).
After the file is export you can add it to the map to examine it, but it should be read immediately to use in ModelBuilder to create or update your model file.
Another solution you could try is to open the file in MicroStation or AutoCAD and perform the same type of steps as listed above, if you're more familiar with that software. You could also use MicroStation or AutoCAD to try to save the file in an earlier version of the DXF format and see if that helps.
Importing A CAD (DXF) Drawing Using ModelBuilder [TN]
Forum Thread: Problem in importing dxf file as pipeline