Your original post you state the height control does not move but then you go onto say it dives or changes cut height, which is it. Also on your last statement you mentioned VFD are you referring to the VMD software. Login as Admin go to Machine Settings and what is your Distance to Corner, this value should be .5 by default. You also have indicators on the right side of the screen for Lockout and AVHC, when the AVHC light is on this is when the Set Voltage should snap to the Current Voltage if in Auto and Sample is On.
Cut a 2x2 square, in the middle of the long segments the AVHC light should be active, here you can either look at your Height Control Screen or watch the vertical white bar graph that represents the position of Z axis, when cutting you should see the bar graph float up and down slightly, or if looking at Height Control Screen with Trace set to On you should see little blips in line graph when cutting. If it is a solid flat line when AVHC light is on then height control is not adjusting.