Is there a way to mask text for individual objects or do you have to set it in the text style? - not sure I follow what you are asking here. Also, I have a note with a text mask that isn't masking contours from .dwg reference. It does mask regular linework in the file though. I have brought the note to the front with no change. Try setting the update sequence of the reference files - if the note is in the active file and you want it on top of everything, put it at the bottom of the update sequence .
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