Issue with exporting .STEP file of an assembly.

I am trying to export an assembly of a sheet metal part with PEM engineering inserts however, only the sheet metal part is exported and none of the PEM inserts show up.

The PEM inserts were originally downloaded as STEP files and open normally and were saved as a SLDPRT if that information is relevant.

If I make all the parts virtual, then the STEP file saves as an assembly as I'd like it to but this is a workaround solution and not ideal as it breaks references and is tedious for large assemblies.

My import/export settings are setup as the default settings for STEP but I have tried changing them but with no luck in improving the issue.

I'm running Solidworks 2017 SP 2.0

One of my coworkers running Solidworks 2017 SP 0.0 saves the same assembly just fine as a STEP file without making the parts virtual and at this point I'm stumped as the what the issue is and how to fix it.

SolidworksImport export