Yes. Open Object does exactly what you saw - no matter what file format you open, it creates a single object for what is read.
To convert blocks to individual objects, you need to open (or merge) the dwg file. I highly recommend that you do not merge it into your current project if the intent is only to obtain the 50 blocks that you mention.
Instead, open the dwg as a new project (which you will later discard), but customizing the import translator setting as shown in the attached screenshot.
After the import, every block will be converted to a AC object in the embedded library.
One of the forum moderators
AC 28 USA and earlier • macOS Sonoma 14.7.1, MacBook Pro M2 Max 12CPU/30GPU cores, 32GB