Ploblem blocks and layers

I have a block (with another embedded block). The block is inserted in layer D-1. This layer is red.

My problem is

• When I move this block to layer D-2 (yellow) the color of the block does not change.
  
• when I freeze layer D-1 the block freezes (when the block is in layer D-2 and D-2 is not frozen).

What is wrong with this block ? Does it have to do with multiple layers. When I explode the block all the elements (objects and attributes are in the layer in which it was originally inserted.

Is this normal ?

TEST.dwg

Explode the block. Put everything on layer "0". Then recreate the block. AutoCAD will ask if you want to replace all existing instances of the old block with the new block (or something to that affect). Answer "Yes".

I can't open your drawing as it has been saved in a more recent format than I can open. However this sounds as though it is behaving correctly and highlights why using Layer 0 is always recommended for creating blocks.

If you create a block on layer 0 it inherits the properties of whatever layer it is inserted on. If you create it on any other layer it retains the properties of that layer wherever you place it.