Export to dwg creates multiple versions of blocks

I am trying to export a dgn file to dwg and for some reason every instance of identical cells get exported as separate blocks in the dwg file (i.e. 10 instances of cell 327W get exported as 327W_1, 327W_2, etc.). The cells are normal cells in the dgn file (not shared). In the export tool I have it selected to create single block for duplicated cells but for some reason it always turns out the same. Any ideas or tips would be appreciated.

Update: When I open the dwg file MS the cells are now showing as shared cells all with individual definitions. No clue why the dwg version of this file is showing as shared cells but maybe that's a clue for someone with more experience than me.