I'm not seeing same behaviour... When you convert to dwg are you using options to convert references or at least options > refs> merge visible levels see screen shot below ( this is off by default most likely source of your problem) Quick Alternative option to using xrefs and no conversion of xrefs single file for client... Make copy of dgn set up view and levels how you want it > save settings> then use merge references from the ref manager Now do export now should only have 1 dwg , no xrefs and all levels same as before views and you can turn on /off anything ... Screen shot is xrefs options keeping xrefs but merge only visible levels/ layers in view
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