Hi Chandresh,
Thank you for your response.
We have this sub-report in Group Footer #1b in the main report. We have some other report have sub-report in Group Footer #1 or #2 and they do not have this problem..
There is one formula under Page tab "Not OnFirstRecord" with the group header 2 in the sub-report but nothing else. When we exported only sub-report in MS Excel, this issue does not happen, so we assume that something is wrong with sub-report setting in the main report.
As per what steps we tried, please refer to the above comments. I believe I mentioned everything we tried. Thank you.