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I'm only finding one reference in the documentation, in the Revision History, about the Interface setting 'List Item Height Adjustment'.

I had thought that this controls the line spacing in lists like that of the Layer Manager but when set to 50 and DataCAD restarted, nothing changes.

Does anyone know what other lists this setting is supposed to affect?

Lists (dialogs) that I have found to be affected by this setting:
Select Alias

The key is 'Item List Height Adjustment'

Program Preferences --> Interface Tab --> Dialog Boxes Section --> List Item Height Adjustment