When Autodesk first introduced its GUI user interface with AutoSketch (and then later in AutoCAD Release 9), dialog boxes were dubbed "dynamic dialogs." (I don't know why; perhaps because dynamic means "vigorously active.") That's the reason many older commands began with DD: they displayed dialog boxes -- dynamically.
Later, the "dynamic" name was applied to other parts of AutoCAD, such as dynamic blocks.
Now Microsoft is using dynamic in its namings. Microsoft Watch reports: Microsoft is consolidating more of its products under the "Dynamics" brand name. Microsoft already relabeled its four different ERP/financial suites as "Dynamics." There even a Microsoft Dynamics UK Blog -- no kidding, such a thing really exists.
Since AutoSketch came out in 1987, I am guessing Autodesk's use of the word pre-dates Microsoft's use, assuming Autodesk wants to join the Let's-All-Sue-Ueberrich-Microsoft gravy train.
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