Hello @One_Above_All ,
Dynamesh uses the Close Holes functionality. Close Holes does just that–it draws a surface in the most efficient manner possible between points A, B and C. It does not evaluate the form of the mesh.
This mesh is fundamentally unsuitable for Dynamesh. It is an open surface. Dynamesh requires a closed volume with a minimal degree of thickness to work. It will attempt to close minor gaps on the surface of the mesh, but will not create thickness for you. Further, if a section of the mesh is read an an open volume or if it is overly thin or 2D in an area, it will begin to break apart in a Dynamesh process, creating problematic geometry.
My suggestion in this case would be rather than just pulling a section of 2D geometry off your mesh, instead use Live Boolean to use another subtractive mesh to cut the rest away in a manner that results in a closed solid. It should then be able to be Dynameshed much more easily and produce far cleaner results.
Likewise, you could attempt to use ZRemesher first to clean and simplify the geometry. There doesn’t appear to be much surface detail to lose here so simply ZRemeshing at high target polycount should produce acceptable results. This will hopefully create a cleaner mesh with fewer polygons that would be within reach of the Dynamic Subdivision “Thickness” feature, which well let you create thickness for a 2D surface. Once thickened, it should be suitable for Dynamesh.
Further information:
http://docs.pixologic.com/user-guide/3d-modeling/modeling-basics/creating-meshes/dynamesh/
http://docs.pixologic.com/user-guide/3d-modeling/modeling-basics/creating-meshes/live-boolean/
http://docs.pixologic.com/user-guide/3d-modeling/topology/zremesher/
Good luck! 