Hi,
the Defect # 278262 addressed an issue with creating text elements in combination with different text justifications. This issue is solved with MicroStation Update 4.
I just made a test and can confirm this is solved.
The issue described here seems to be a new issue with rewriting existing text elements and a first test let me assume the new origin point is used in UOR instead of working units.
I will follow up on this one and let you know.
Thanks for reporting this issue.
Artur