I noticed that when re-pitching notes, stem direction property is apparently taken from the original pitch and not the re-pitched note.
[EDIT – I just noticed that by selecting Stem/Remove Forced Stem on the particular notes fixes stem direction, so apparently something was retained from this xml imported file? In any event, it would be great if Dorico re-pitches AND uses default stem direction behavior.]
[ *** Solved - Just to make sure, I verified that the stem direction property is NOT taken from the original pitch (my first assumption / guess) - it was getting mucked up (possibly) by the xml stem property. I wanted to share this clarification with everyone 
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