Can’t import text from DXF/DWG files in SketchUp
You’re not doing anything wrong.
SketchUp doesn’t support text strings from DXF/DWG files.
When importing the file you’ll see that SketchUp ignores the text.
Of course, you could convert the text strings into ‘exploded vectors’. So you’d have thousands of vectors representing the shape of the text. SketchUp would display this text as normal vectors. But I don’t think that’s a great idea it would be impossible to edit and pretty useless.
Here’s a discussion from their support forum https://forums.sketchup.com/t/text-is-missing-from-imported-autocad-dxf-files/10174/2