Problem

Dimensions are not associative despite association lock being switched ON.
With association lock ON, dimensions still are placed as non-associative dimensions.

Product: MicroStation V8i
Version: 08.11.07.171
Area: Dimensions, Association

Solution

Tool settings: check Associative option.
When starting a dimensioning command, the tool settings dialog should pop up.
By clicking the little black triangle in the lower right corner of that, additional options will be shown. (see arrow 1)

Those options are meant to override the settings in the chosen dimension style including the association lock (see arrow 2).

In order to place an associative dimension, both Association options should be checked in Settings > Locks (see picture below)

as well as in the Tool Settings override i.e. the Dimension Dialog shown first.

Next to the override setting, compatible dimensions should be set to OFF, key in:set compatible off

Use File>Save Settings to keep this status for next drawing/modeling sessions as well.