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Basically, my story or theme that i have planned out for my PS outlines is as follows:

-did poorly my first years in college, didn't know what i wanted to do
-academically dismissed from my undergrad
-enrolled in a business law course at a community college, found passion in the subject
-quit my full-time job, and with my new found purpose was motivated to return to school
-maintained a 3.8 GPA for the next three years until graduation

basically the theme would be how i found an aim, a goal to motivate to take control of my life and steer it into another direction and how i hope to continue on that path through law school.

However, i hear that this sort of theme is not only cliche, but the negatives of being dropped from an undergrad shouldn't be addressed in a personal statement. Is this true even if it truly did lead to a turnaround in my life? (true story, and my transcripts do reflect a significant turnaround after that blaw course and i did subsequently quit my job of 3 years to pursue law school)

any advice greatly appreciated, thank you.

The entirety of this "PS" sounds exactly like what should be put in an addendum. Not a PS. Find a new topic/theme and write what you have proposed in an addendum.

I would say it depends on when this all happened. If it's been 10+ years since you initially dropped out of undergrad then you very obviously are a different person and the adcomm know that. But if it's been less than five years than using that story so in depth may hurt you.

I have a similar story. I mentioned it subtly in my PS, but I could not write the entire statement about it. Honestly, writing a "personal" statement about your academic career, which is clearly documented in your transcript and resume seems a bit weak.

Now if in that year when you got dismissed, you remained out of school, and picked up a dead end job working as a janitor, which reaffirmed your passion for education, now you have something...

I'd say to make sure you mention stuff that your other papers cannot tell.