1.simple polymesh
2.added 4 times division (smooth result)
3.same polymesh with dynamesh added, calculated and divided 4 times (high poly count still hard edges)
As you can see,once applying dynamesh, even after dividing multiple times (4 times exactly here) it won’t smooth out the edges it seems to adds more edges or loops to the original mesh and tries to retain the original edges after division, instead of smoothing it out why is that ? is there any workarounds ?
Ok, all you have there is a sphere…Dynamesh is intended to help you ‘rough out’ a basic shape to further refine. Pull and push on your model for a while, then remesh with ctrl+drag in the workspace. See link http://docs.pixologic.com/user-guide/3d-modeling/modeling-basics/creating-meshes/dynamesh/
You were promted to freeze your subdivision levels …and you clicked on yes, right?
I tried that with some other model and it ended up all edgey so I tried to reproduce it and this happened
In the original model it did happened and and I clicked yes, but here this basic sphere didn’t had any sub-division level at all ,it’s just a base shape. I didn’t tried dynamesh after adding subdivision level.
Well if you just want a basic smooth dynamesh sphere subdivide as you did the first time , activate dynamesh and click no to the freeze subdivisions…
dynamesh projects a dense uniform mesh that wraps around your subtool if it has edges and you started with a high dense dynamesh subdividing won’t smooth much.
IMHO, starting with a zsphere armature to get the basic shape first is the way to go. What do you wish to model?
Look at your poly count on both models. Notice the dynamesh is much higher. Now turn on your polyframe (wireframe). You’ll see that the dynamesh has a lot more points. Those points are defining the hard edges before you even sub-divide. That’s why you’re getting the edge look. You need to decrease your dynamesh resolution or sub-divide your sphere to make it smooth before you dynamesh it.
Nothing particular I was going through certain tutorials and a improvised a bit and messed up my tool, but I made copy before trying it, so no harm done 
and yes I did used zsphere while creating model
clicking ‘no’ did the trick thank you
got it, so that’s what happened ! thank you so much for explaining that for me 