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1) Currently, for a "*.asm" file, when we do a File--> Save a Copy to "*.dwg" format for a half-section view of an 'ellipse', it converts the ellipse to poly-lines.
2) The result remains same whether we open this "*.dwg" file in AutoCAD or Pro/E.
When we do the same for a full-section view of an ellipse, it exports successfully as an 'ellipse' without any issues.
This sounds like a bug - have you tried submitting a call?