I think we understand what's going on. The DynForm module appears to be working correctly but the way in which it validates fields is quirky. Maybe this could be changed in a later release?
My form has 4 fields Name, eMail, Company, and Phone. email and Phone are validated using a regular expression and Name and Company are validated using SQL Validation. All fields have default values as watermarks.
If you submit the raw form, DynForms flags eMail and Phone as being illegal but no mention is made of the other two bad fields. If you enter valid eMail and Phone values, THEN you get the error messages for the Name and Company fields.
Everyone here is expecting to see a complete list of all bad field values all at once when a form is submitted. The actual behavior is unexpected (and undocumented?).
DynForms performs all regular express validations first. If all of those checks pass, then and only then does it process the fields with SQL Validation. This makes testing large forms much harder - the testor has to have intimate knowledge of how each field is validated or else it appears as if the field is not being validated correctly.
Can you confirm this conclusion?