I'm wondering what I can do to force everything to update like when the file is freshly opened.
Attached is a vid of adjusting planes that update sheet metal. Only when the open is frshly opened does it update correctly. After editing the model, the updates dont kick in until the file is re-opened.
I have just installed ST7, so I don't have any experience with the new Update Active Level command. And according to your movie, it does behave strangely.
But in previous version, I found out, that Update All Links didn't update the model entirely. To be sure, I always had to do the update with Inter-Part Manager command.
So, saying this, did you try to update the model like this:
1. click on Inter-Part Manager command in Tools tab/Assistants group.
2. click on Update All button. If necessary, click Activate All first.
Doing so, I have always updated the assembly properly.
I hope, that this will help you with updating the model.