Try to use "Update references.." from PDM (Tools->Update references..)
That did the trick! Thank you very much.
Spoke too soon. It looked like it worked but when I went to check it out I got the exact same list of files as in the image above.
It looked like it was going to work.
When I click "Update References..." the "Update" button is grayed out.
If is only one drawing you can try this:
Make a copy of this file outside PDM
Destroy the drawing from PDM and add to vault the saved one. Make checkin and verify references