DWG as a working drawing format
DWG is a compact binary format that can retain layers, blocks, layouts and application-specific CAD objects. Complete reading depends on DWG version and the receiving software.
CAD & ENGINEERING DATA
Compare DWG and DXF for file size, data exchange, fonts, CAD objects and manufacturing communication.

DWG is a compact binary format that can retain layers, blocks, layouts and application-specific CAD objects. Complete reading depends on DWG version and the receiving software.
DXF was designed for CAD data exchange and is easier for many systems to parse. It can be larger than DWG, and proprietary objects may be simplified or omitted during export.
Neither format is universally better; choose according to the receiving workflow.
Send DWG with a controlled PDF when the supplier accepts it. DXF is often more convenient for 2D cutting and CAM. Add a matching STEP/STP model for 3D parts.

Keep the source file, export to a new file, select a compatible DXF version, confirm units and compare entity counts. Use the released PDF to verify text, dimensions, tolerances and notes.
FAQ
Not universally. DWG suits working drawings; DXF is often easier for exchange between systems.
It often can be, but size depends on content and export version.
Yes when exact layout, text, tolerances and notes matter.
CAD & ENGINEERING DATA