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When you convert a CAD annotation feature class to a geodatabase feature class using ArcToolbox’s CAD to Geodatabase tool, the output geodatabase feature class geometry type is point, not ESRI Annotation.
ArcToolbox’s CAD to Geodatabase conversion tool does not support a direct conversion of CAD annotation features to geodatabase annotation features. The CAD to Geodatabase tool will convert CAD annotation features to geodatabase point features (using the insert point of the CAD annotation as the x,y location of the geodatabase point feature).
Convert the CAD annotation to geodatabase annotation.