Note there is a related Question also posted with regard to Changing/Assigning/Defining CAD coordinate systems terminology and two different approaches.
So, to tack on to that, or this can still be treated separately I think:
I read and interpreted (correctly or not) in an ArcGIS Pro Help Doc -- that if the CAD Data has NO geospatial coordinate system, but the Units are known to be in feet or meters, that I can Assign/Define the coordinate system to be "anything" I want. but to stick with a projected system in those same units. OK, fine.
But, what if the CAD units are in "inches or millimeters"? ...Do I still stick with their respective parent units of feet and meters, respectively? Or, do I need to do something different?