Adobe illustrator cc template layer not working...image not dimming to 50% when template is selected

Not sure why this is occurring but in the past whenever I chose to make a layer a template, that layer was always dimmed 50%.
Now, it no longer does that. I can't get the template layer to dim despite double clicking and verifying that 50% dim is checked along with the template box.
Did something change in the CC version?

Are you sure you have an image on that layer?
Images are dimmed, but vector is not.
If you want to dim vector artwork, select it on that layer and choose Effect > Rasterize.
It's an effect so you can always undo it.

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