When you connect a configuration to MicroStation 2023 using the Manage Configuration utility it appears not to read a custom Standards.cfg file.
This manifests as variables that you have defined being displayed in the Configuration Dialog as undefined or appearing with default or other values. Close inspection will reveal that the variables being read are those from the first configuration listed in the Manage Configuration Utility. The configurations are listed in the UI in the same order.
This is due to an unexpected change in the underlying Microsoft form code used by the Manage Configuration UI shown on the Work Page which results in the first configuration listed by the Manage Configuration Utility always being read regardless of which configuration is selected and shown as active.
This bug has been fixed and is expected to be available in MicroStation 2023.1.
Workarounds in the initial 2023 release are as follows: