Recently we encountered two issues regarding DXF files and generating graphics. Both only happen if you enable "Reuse Active Drawing" in "Generate Graphics" application options.
1) Display Model is loaded into wrong drawing
If you have opened one or more drawings (DWG) and one DXF file and you generate graphics over the DXF file: the display model layers wont load into the DXF file (as expected) but in one of the other currently opened drawings.
Solution: close all other drawings or save DXF as Drawing
2) error message when generating graphics
An error message is displayed and the Display Model doesn't load when generating graphics over a DXF file. Error message shown:
Drawing of Display Model in Map failed. Adding layer failed: layername.
Failed to retrieve message for "MgLayerNotFoundException".
The resource was not found.
This happens only if the DXF has been saved with a coordinate system.
Solution: save DXF as Drawing file.
Both issues have been confirmed by Autodesk for Map 2017.