IZArc seems to be the only software that can still create older ARC archives and also supports extracting of Windows Cabinet files.
Convert Windows Cabinet Compressed Archive to ARC lossless data compression and archive format.
We have found 3 software records in our database eligible for .cab to .arc file format conversion.
Microsoft Windows software - convert cab to arc on Windows
A freeware archive utility that supports many archive formats
Convert from cab file format
The tables with software actions are a good pointer for what a certain program does with various file types and often may give users a good hint how to perform certain file conversion, for example the above-mentioned cab to arc. However, it is not perfect and sometimes can show results which are not really usable because of how certain programs work with files and the possible conversion is thus actually not possible at all.
One of the many available file compression utilities
Freeware file compression tool