We spoke with the "visa officer" at the PSB recently re: switching from spousal to work.
They said at this moment, no need for the z visa, they will switch directly so therefore no need to leave, this is temporary during the pandemic.
Dali and Lijiang know nothing of this. We were going to double check, but have not as of yet.
You could try calling the KM PSB to double check.
This was the info from last week.
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Went there with the kids, was very cool.
Can rent traditional outfits, take pictures in the temple and throne, my girls loved it.
The town itself is great if you like the old traditional buildings, and they had some shows put on, music, dancing, and little skits.
For about 35 rmb each, kids free, was worth it, wished we had more time there.