This may be because that XREF is so far.
You may try different things:
1. Go to the Viewpoint where the XREF is placed and move the XREF (instead of using the Drag Reference command of the Trace Reference Palette). Then the XREF will be in its correct position and you will not have to use the Drag Reference command.
2. Delete the XREF, then place it again, this time graphically so it will be placed where you click, and not somewhere out in the stratosphere.
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