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With NX9 the dimension text is automatically rotated, so that it can be properly read, but with NX10 it doesn't.
Solution
The PMI Preference setting "Update Reading Direction after View Update" was toggled off, after setting it ON, the dimensions properly rotate to be readable again.
Why does this PMI setting affect the normal dimensions in the Sketcher ?
The "Update Reading Direction On View Update" preference does control all 3D annotation display, including Sketcher.
Notes and References
Hardware/Software Configuration
Platform: INTL64
OS: window
OS Version: 764SP1
Product: NX
Application: DESIGN
Version: V10.0
Function: SKETCHER
Ref: 002-7007709