Hi Gerald,
You likely had a custom style file (or, realistically, a layer file) that was used in order to get the color schemes to show up correctly. Every time I import a dgn into ArcMap (10.3.1), it is always random for me.
Also, it is possible that you had to first export your DGN into a DWG in order for things to look proper in ArcMap 10.1. Since 10.2.2 or so (or maybe 10.3, I can't remember), dgn files are handled better. Maybe you could export your DGN to a DWG and see if you line styles are coming in on the right symbology?
Do you happen to have the old MXDs you used with 10.1? Or have any old folders that might have had a layer file or style files with them? If so, you could likely still use those.
Also, it might be best to place this forum in a more CAD-like place since Community Help is mainly for GeoNet help. Though, I am having a hard time finding a 'generic' CAD place aside from GIS for Hydrographic Surveying or (I don't think you would want it here ArcGIS for AutoCAD since it is AutoCAD related).
Side note... should we create a CAD/GIS data integration Place?