I’m perplexed, and I’ve tried everything I can think of to figure this problem out. I’m trying to build out panels from a dynamesh sculpt with the rigging functionality of zspheres, then giving those shapes thickness via CreateDiff Morph…When I create the thickened subtool, It won’t let me retain my subdivision levels when I subdivide… It begins working when I do a QRemesh or unified skin or any sort of topological change like that…I’m stumped. I need my subdivision levels 
File is here if anyone wants to investigate.
http://www.ericbac.us/MorphDiffHelp.ZTL
Thanks in advance for any help!