It seems that .dgs files are documents written in Hebrew from TES Dagesh Pro software, so dgs to docx conversion pretty much certainly describes export to MS Word. The software supports DOCX format, so it should be possible, but that is all we can tell. If you have some issues with .dgs files, it would be perhaps best to contact their support, but the software seems to be a bit outdated with first versions appearing over two decades ago. Perhaps some abandonware websites might be of help.
Updated: August 3, 2023