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When creating a linked body, the setting "Use Display Properties of Parent Part" does not seem to have any effect.
When creating a Wave linked body, where to change the setting if the linked body should inherit the properties from the parent object or from the defaults?
For instance color or layer settings.
Solution
If the "Use Display Properties of Parent Part" toggle is on, it will always inherit the display properties from the parent object.
If the toggle is off, the display properties depend upon the modeling preference "Display Properties for New Geometry" --> "For Extracted and Linked Geometry".
In the Modeling application go to Preferences --> Modeling, under the General tab "For Extracted and Linked Geometry", if you pick "Parent Object" the linked body gets the properties from the source geometry. If you pick "Part Default" it gets the properties from the defaults.
This setting can also be changed under Customer Defaults --> Modeling --> General --> General tab --> "Display Properties for New Geometry" --> "For Extracted and Linked Geometry".
Pre NX 10 Customer Defaults --> Modeling --> General --> Display Properties Source tab --> "Extracted and Linked Geometry".
Notes and References
Hardware/Software Configuration
Platform: INTEL
OS: window
OS Version: 764SP1
Product: NX
Application: ASSEMBLIES
Version: V10.0.3
Function: WAVE
Ref: 001-8273301