Interesting ... modlist.txt
That's my present modlist. (I removed some of the realism mods [iNeed, Frostfall, Wet and Cold], and the quest mods [Falskaar, Wyrmstooth...] because I want to play through the game and finish some main quests before I start going into extra stuff.)
But, these are where your LOD's should be placed. If it doesn't initialize properly when Skyrim is started (and you're in the open world), then I suggest reinstalling DynDOLOD (repackage it your way, if you need to), and running it again.