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No, because xref is only a link to external dwg file.
If you wish explode external dwg, detach xref and reload it in your drawing using insert command (not xref). This command add external drawing in your blocks table, this permit you to explode block.
Use purge for remove block reference from blocks table
use the bind option to make it a block. There are 2 options when binding: Bind and Insert. If you choose Bind, layers have the name of the original xref added to them. If you use insert, everything will be as though you inserted it as a regular AutoCAD block. Once you bind the xref, you can then explode the resulting block.