After georeferencing CAD in ArcGIS Pro, generating World (wld3) and Projection files (prj), FME doesn't position the drawings correctly despite enabling advanced options. Why?

What coordinate system are you using in ArcGIS Pro? Did you set the same coordinate system in FME? Can you please tell us a little more about the steps you have followed?

Thank you for getting back to me. First, I geo-referenced the drawing in the ArcGIS Pro and then I try to import it to FME. Yes, I did set the same coordinate system but the issue is that the world file is not applied to be in the right location. Both prj and wld3 files are in the same folder with the same name as the drawing.

I attached some screenshots of the settings for your references.