I was under the impression saving the exploded state only saved the relative positions of the exploded components. I thought the dashed lines that showed up as features in the model tree was separate from this.
It is good to hear you resolved the issue. On a side note, sometimes depending on the size of the assembly the line graphics can look awkward at best. For small components, on the order of acentimeter ortwoI found that I had to change my line style to a double dash to get them to show up clearly in the drawing. Otherwise I may only get one dash or a portion of a dash making the line confusing.