The original model, in shade visual style, all objects are distinct and separate objects as they should be. However, when an xref is loaded (overlay) the model (display) jumps and the objects that were distinct now appear mingled together. Also, when you hover over an object it's highlight outline does not align with the object, it is offset from it approximately the amount of the display jump. I compared display and visual style settings from other model drawings that did not have this problem but came up with nothing that helped. More than one model drawing on this particular project created by another discipline has this problem, whereas on a previous project models by another discipline never had this problem and neither do models created within my dicipline.