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Running the Add CAD Fields tool, located in ArcToolBox > Conversion Tools > To CAD on a shapefile and then calculating a value in the Layer field, turns off all layers in the output AutoCAD DWG or DXF file.
The output file appears empty, and the data cannot be viewed in ArcGIS Desktop or in AutoCAD.
This occurs with all versions of output CAD files.
The Add CAD Fields tool adds a field named LyrOn to the attribute table.
When this field is added to a shapefile, the default value is calculated = 0.
If the Layer field is calculated to a layer name for use in the output CAD file, the layers are turned off and are not visible in either ArcGIS Desktop or in AutoCAD.
Two alternative workarounds are presented below: