In Model tab of a model having dozens of layers, menu LayerTools->Isolate Layer, pointer changes to square & visual objects or grouped objects highlight as pointer mouses over. Cmd windows text as expected. Good. Mouse over an object group member & entire group highlights as expected. Select object group & group changes color to indicate selection. Cmd text indicates 1 layer found. Good. Enter RETURN. Now BAD: ALL layers disappear, including selected-for-isolation layer objects. Layer Manager has expected display of layer visibility states (all but selected layer marked grey dot not show, selected layer marked green dot show). Selected layer is UnLocked, NotFrozen, Active. LayerTools->Unisolate restores all object visibility.
IsolateEntities does work as expected.
I have used Isolate Layer in prior DS versions. Behavior was a bit hincky but mostly worked as described.
