Text favourite issue

I have created a couple of Text Favourites in our DGNLIb, using a text style that we have for use with drawing sheets. Essentially text should be 3.5mm high x 2.5mm wide.

When I want to add to a drawing the text come out 100 times smaller!

And is unreadable!

I have tried changing the text height in the Text Editor but this makes no difference. 

Is this a bug or am I doing something wrong?