So eventually I tried everything under the sun to attempt to rectify the issue. Solidworks was having problems saving and opening files, I was receiving errors that my files were read/write locked or protected although they were not. In a last ditch attempt to solve the problem I reinstalled Solidworks. Upon retrying to import my Step Files I was warned that my template files had been corrupted. When I opened my template file folder I found that Solidworks had been saving components under this directory even though I hadn't saved anything since these problems arose. I cleaned out everything and generated new templates and the issue seems to have been resolved.
I have same issue, When I import IGES CAD files to Solidworks, the results is *asmdot instead of assembly file and I have to save as assembly than I can send to PDM. I tried to repair and change to Solidworks and couple more thing but nothing is changed. Is there a way to fix this issue at Solidworks 2016 sp3.