How much do Dwarves seem to expand in your campaigns? In my last ME campaign the Dwarves near Sylvania never made moves to take mountain provinces. The Vamps for some reason, took mountain land near them. Then I razed those settlements. A hundred turns later, and those Dwarves with a single region(not province) made no moves to settle those open regions. And in my current Vortex campaign the Dwarves close to the jungle have been at war with their Greenskin neighbors forever. But despite having 3 armies, they have made no moves to attack them. I have a lot of mods. But only one really effects the ai in relation to settlements. But it's only suppose to make them less likely to settle/occupy land that they aren't suited to.