Sorry this is so late, but I am wondering how you all got your CAD data into the feature class?
Did you use the CAD to geodatabase GP tool?
Or an import? I think that could help us figure out where the corruption of maybe the data spatial index happens.
Thank you,
Lisa
This seems to be a known issue in ArcMap!
29769 - Spatial Adjustment does not work on geodatabase feature class.
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