Thanks for the replies. I wound up doing something suggested by the Autodesk person in my double posted thread. Here's what worked for me:
The surface contained a large area - 27.5 Acres of the total 28 Acres, which is the only area I wanted to export. The remaining 1/2 acre of the surface included several smaller disconnected chunks of surface. I cropped the 27.5 acre piece to a new drawing, and then was able to export the DEM in about 5 minutes, with my 1 foot sample spacing preserved. Not sure why that worked better.
I should have explained a bit more earlier: This is a survey of a creek bottom which was a lake bed until the dam broke in 2018. This survey surface is essentially (dry) bathymetry which supplements the lidar surface below the previous water surface elevation (when lidar was flown).
I have worked with lidar DEM surfaces in C3D going back to 2010 - they don't work so well due to 1) C3D chokes on large surfaces with millions of points 2) aforementioned horizontal shift issue when bringing DEM surfaces into C3D. Thus, I prefer to export the survey surface and deal with pasting surfaces, etc. in GIS or GeoHECRAS.
I'm assuming the horizontal shift issue is still present in C3D 2022. Can anyone substantiate this? Also, are there any plans to actually fix this problem?