Problem

ORD is unable to cut cross-sections on imported or XREFed alignments, but can cut them on alignments newly created. 

Solution

Please check that you have created a 3D Model in the container file (active file) before attempting to cut cross-sections on imported or XREFed alignments

Example:

1. Created a new 2d test.dgn file
2. Reference in Alignments.dgn
3. Trigger the 3d model creation on test.dgn by setting any terrain active or creating any alignment with a profile.
4. Open the 3d model in a new view
5. Created XS Named Boundaries on the referenced alignment.
6. Creates XS Drawings.