Weird directory behaviour 3.5 inch SPLICE mode

[SomeGuy]

XDF uses only the standard 80 tracks.

I have never encountered a 1.44mb PC-DOS 7.0 1.44m disk set. Are you sure you are not actually using PC-DOS 2000? Confusingly, command.com in PC-DOS 2000 identifies itself as "IBM PC DOS 7.00, revision 1".