It's nice to dream! They offer free dining because they are charging you rack rate for the room! You can add the dining plan when renting points, but you have to pay for it, it is never free for DVC.
Regardless if you have an AP or not, you are required to purchase a package to get Free Dining. That means pay rack rate for the room and at least one, one day park ticket per person that is registered in the room.
Free dining is available only with a full price room/tickets package reservation. It has never been available with a DVC reservation or with an annual passholder room/dining package. AP holders would need to buy a regular package, pay rack rate for the room, and purchase at least a one-day base theme park ticket.