This post was updated on May 30, 2022; 11:32am.
If you have Free Snap on and other snaps off you can place the dimension line at any position.
You can change snap settings during an operation (as you need to have some snap on to specify extension lines origins).
Another, maybe more convenient way is to zoom in very closely when defining the position of the dimension line. This enables you to place the dimension line closer to the object without getting snapped to the endpoints.
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