We located this from an Autodesk Discussion Group. Hope it helps.
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Re: DDedit Flips text to 0 angle
That's a new "feature" in 2007. People were complaining about editing the text when rotated or if it was too small to see in
AutoCAD 2006, so they changed how the editor works. If the text is too small, the editor scales up for typing, and if the text is
rotated, it rotates it to 0 degrees, just for editing.
Allen Johnson
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Good Luck.
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