Does the attenuated chicken pox virus from the vaccine remain dormant/latent in the nerve cells?

Yes: The Oka strain of the chickenpox virus is a weakened strain that provides the basis for the varicella vaccine. It behaves like its relatives, the wild chickenpox & other herpes viruses. It can & does go dormant in the nerve nodes along the inside of the back. Shingles, or reactivation occurs at a lesser frequency than the wild virus but does happen.