Well, it seems that wblocking a dwg with data objects in it is NOT the end of the world. My speculation was thankfully incorrect.
There does seem to be an issue the first time you try to check in a wblocked version of your drawing, but if yo uncheck the objects, check in the dwg, then check it out and in one more time, they appear to slide right in. More investigation is still in order, and the whole thing makes me nervous to be honest.
It works, but it’s an exciting ride….
Update Part 2:
_recover might not be the problem. Yep, I might be wrong. It’s been known to happen.
Right now we’re tracking down a problem with pipe networks and certain labels that might be the source of my fun. A full recant to come? Possibly, stay tuned, dear reader.