You shouldn't need to manually add dummy factors any more with the updated DSD platform. That's what the "Extra Runs" option does for you, but that way you don't have the extra dummy factors in your outputted table. I think this is what is actually creating your problem, because when I ask for 7 blocks with the option for centerpoints to be added, and use Extra Runs = 8 instead of having X6 and X7, I don't end up with nearly as many centerpoints as you did. It looks like dummy factor approach to adding runs is having a bad interaction with the blocking functionality. When I look at the Design Evaluation with quadratic terms specified for the Extra Runs approach, the correlations are reasonable. I also have 2 fewer runs, which is a bonus I guess.
Did you really want 7 blocks? The description says 5, so I'm confused about that one.
-- Cameron Willden