If a file was initially created in version 3.3 or earlier, any smooth shape (oval, circle, round-cornered rectangle) converted to a path will become a multi-sided polygon. Even though the document is saved as version 7, the converted path is not a smooth curve. If I repeat the operation in a newly created file it works fine. This also applies to boolean operations like Intersect and Merge.

I suspect there was some protection built in to earlier versions to prevent the user from making an object using version 4 then saving as version 3.x, resulting in a shape that version 3.x does not understand. The problem seems to be that this now unnecessary code looks at the file creation version, not the file save version.

Does it really take over nine years for Quark to fix bugs? No wonder they’re in the toilet.