Is it possible to XRef DWG files directly into Datacad without converting them to Datacad format. I thought that I read that it can be done but cannot find it. Maybe I was dreaming again.
Not that I'm aware of - the available file types are listed in the pull down at the bottom of the xref insert menu - which is set at AEC only.
What you may be thinking of is the ability to open a standard File Explorer Window and drag and drop a DWG into the DataCAD drawing screen (open file or no file open) and it will auto-convert and load.