What CMs encoding is
CMs Urga, CMs Huree and CMs Ulaanbaatar predate Unicode support for Mongolian. They store each shape on a Latin code point, so the text is legible only on a machine with the same font installed and reads as Latin nonsense anywhere else.
Why it is still needed
Plenty of existing documents, letterheads and printed material are built on these fonts. Matching them exactly is sometimes the requirement, and moving to Unicode would change how the file renders for whoever receives it.
Exports a real .docx
The output is a Word document with the font applied — not an image and not a PDF. It opens and stays editable in Word, and reads correctly for anyone who has the font.