That fixed it. Thank you. I even did a Google search for that setting before running DynDOLOD. I didn't find anything specific to it, so I left it unchecked since that's how it is for the Step modifications guide.
I am having an issue in Whiterun where some of the LODs appear missing as if DynDOLOD 3 expects it to be obscured. I tried to insert the images from URL, but it wouldn't let me. Here's a link to the two images.
https://imgur.com/a/skyrim-dyndolod-3-issue-EnzLUBn