You cannot preserve Sub-layers when exporting to .PSD, only main 'parent'
layers. Every Illustrator object resides on it's own sub-layer within the
'parent' layer
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Len
Posted from the UK
Perhaps to understand the sub-layer roll, just think of them as object indicators. Each object has it's own sublayer. If you compound path multiple objects, then that becomes one sub-layer. If you combine objects into a group, that becomes a sub-layer, but within that sub-layer you'll get each object in it's own sub-sub-layer.
Bob
In addition to the above, blending modes can force layers to merge during export to PSD.
Rob