Hi,
Never used this tool before, but unless I am missing something really obvious it produces nonsensical output for me.
In attached example I have created a new file from seed3d.dgn, and placed a line with keyins: XY=0,0,0 ...
The expected result is a line with start point at coordinate X=0, Y=0, Z=0 and this can be confirmed in Element information Tool.
However XYZ Text insist on different interpretation.
Best Regards,
/Chris Z.