Description
When the Select Layer From Source CAD parameter is unchecked, any source layers for the Source Layers For Units, Source Layers For Levels, Source Layers For Doors, Source Layers For Details, and Source Layers For Facilities parameters must be map feature layers made from the source CAD data.
Solution
In the Properties window of the map layer, select the Source tab and verify that the layer's Location and Feature Dataset properties match a CAD file specified for the Source CAD Data parameter.