whom are you quoting?
I saw yours, and I know how I create this block like yours.
A block like mine?? That one IS dynamic and the attribute supports the visibility state(s)
Did you insert the block? Or open the DWG file? As a DWG you will not experience the dynamic properties.
I don't think you are doing anything 'wrong'; however your order of operation is.
Yes I have seen your file;yes it has a problem.
I have found it best to ALways create all visibility states and LEAVE all objects alone when creating them
THEN
add the objects to the state(s)