update question: I did NOT install the Hyperdeck utility on my edit machine. Is it necessary to install this software for Avid Media Composer to be able to "read" the DNxHD files?
answer: (yep, I love it when I can answer my own question) My problem was because I did not update the Hyperdeck utility on my edit workstation. After updating to v2.0, Avid can now read the MXF files. Situation resolved.