Set color by level

Good afternoon, this is a very basic question, but one that I have spent about 2 days trying to figure out.  On Level 1, went into Level manager, assigned a different color, linetype, and line thickness.  However, when I click on the color, ask it to assign 'by level' it doesn't change.  

Should be a super basic function, but can't get it to work.  

Thank you. 

JG

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