I rescaled the site as suggested and clicked the advised control. The result is when I apply site drawing to the sheet, the sheet is reduced to a thumbnail, not the site drawing. What could I be doing wrong?
@EXPODTL It looks like your workflow is messed up.
Your site plan view in the View Map appears to be set up ok.
Layout Book Masters should really be limited to just your drawing sheet outline & company data title block.
In the Layout Book Map you have a sheet C-4 Scheme 4 which contains no views.
In your Layout Book Map select "C-4 Scheme 4" and in the layout settings choose the required Master layout drawing sheet. Zoom to fit your screen.
From the View Map drag "1. Scheme 4" into the layout view. The drawing will be added and scaled (1:200) on your Layout View. If you can't see it use zoom to fit and move the drawing to be visible on your sheet. If the drawing is too big for the drawing sheet then go back to your "1. Scheme 4" settings and change the scale to suit the drawing sheet 1:500 or even 1:100 if it is too small. Return to the Layout sheet "C-4 Scheme 4". You may need to reposition the drawing on the sheet.
There are different ways to add drawings to the layouts and adjust their settings, hopefully the above will get you back on track while you learn the different ways.