turn on/off layers on sheet file, then exchange to master file the level is on/off again

I need you to break this down for me a little more.

Where are you controlling the level on/off display for your sheets? Are you controlling that through the Master file, or are you controlling that in the sheets?

"Always" and "Never" are settings for New Level Display, and they have no bearing on the display settings of existing levels.

The master file isn't ever controlled by the sheets it is referenced INTO. Your sheet does not control your master file, and for good reason.
If you have a master file that is referenced into more than one sheet, which sheet should control the display? Yours, or the guy down the hall?

Exchange takes you into that drawing, but it takes you into that drawing in the state that drawing was last saved as. What you are doing in your sheets is irrelevant to that drawing.

I need you to break this down for me a little more.

Where are you controlling the level on/off display for your sheets? Are you controlling that through the Master file, or are you controlling that in the sheets?

"Always" and "Never" are settings for New Level Display, and they have no bearing on the display settings of existing levels.

The master file isn't ever controlled by the sheets it is referenced INTO. Your sheet does not control your master file, and for good reason.
If you have a master file that is referenced into more than one sheet, which sheet should control the display? Yours, or the guy down the hall?

Exchange takes you into that drawing, but it takes you into that drawing in the state that drawing was last saved as. What you are doing in your sheets is irrelevant to that drawing.

I'm controlling the level on/off display through the Master file, so all the sheet files has the same level display (this is what I thought would work), however when exchange from sheet file to master file (so, I have the same rotation and location from sheet file) the levels display are back on.

Luclian

In the reference files for the view in the sheet model what do you have the set for New Level Display...

So...

You start off with your master drawing set up correctly, with the levels on and off the way you want them.

You go into your sheet drawing, and see the levels on and off the way you should be in your master reference.

You Exchange into your master drawing, and the levels that were previously off are on?

And when you go back to your sheet, the reference levels are turned on also?

Hmmm...I don't Exchange often. I wonder what setting could be causing that.

Following on from Mary has said.  You dont always see the results until you reopen the file.  I sometimes use the keyin RD= to reload the design file

When I exchange into the master drawing, and the levels that were previously off are on in different location (different sheet), not in the location of the sheet file I exchanged it. It's driving me crazy! I thought that would have a configuration view/modify that would avoid it to happen.