Only if you book a full price cash package. The "Free Dining" promo is desiged to fill up otherwise empty full price hotels, there is no value for Disney to offer "Free Dining" to DVC members staying on points.
I wish I had a dollar for everytime we see this question. Since the "free dining" (remember, nothing is truly "free"), you have to pay the rack rate or highest rate for the given room during that time period. Since as a DVC owner, we already "own" the room, we aren't paying for it at Disney's prices, so "no", we don't get the "free" dining.
It's a sign of just how popular the promotion has been I guess, I got my ADRs for September booked plenty early because I knew that with free dining likely to be offered (as it turned out to be) it could get a little tricky if I left it till later.
You can purchase a DDP which is basically what Disney is "giving away free". depending on your eating preferences, it can be a bargain. I don't use it because we don't usually eat all the appetizers and deserts. I do purchase the DDE card this saves you 20% of your entire bill, drinks included. The DDP does not include drinks. You also save 10-20% with your DVC member card on food only at some resturants, there are a lot more restrictions with the DVC discount, some resturants it's only on lunch, some it's 20% on lunch 10%on dinner. There is also a discount for AP holders at a lot of places, I often pull out all three and see what offers me the biggest savings, just remember to tip on the original bill not the dicounted amount.