Linked objects won't update to new parent colors. After creating a linked object and then going back to the parent part and editing the color of the parent object, the linked object does not automatically update.
Solution
This is as Designed.
The option for "Use Display Properties of Parent Part" Color propagation is for create or edit only and will not update on-the-fly or automatically.
To Update the Linked object color to the Parent object color:
1. Right click on the linked feature to edit.
2. Toggle the option for "Use Display Properties of Parent Part" Off then back On and the color of the linked object will update to the parent objects new color.
Notes and References
Hardware/Software Configuration
Platform: all
OS: n/a
OS Version: n/a
Product: NX
Application: DESIGN
Version: V12.0.2
Function: WAVE
Ref: 001-9732534