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Ok, I figured out a fix for this problem. This might be useful for other folks who need to export omni outliner file as xlsx.

Here are the step-by-step guide:
1. Expand all outlines (go to "View" and select "Expand all")
2. Export as HTML (go to "File" and select "Export")
3. When the dialog box appear, choose "File Format" and select "HTML"). Please note there are two HTML export options; HTML Dynamics AND HTML. Choose the latter
4. Specify folder location (optional)
5. Once exported, look for "index.html" in the folder created by omnioutliner.
6. Drag or open that HTML file in MS Excel.
7. Do a save as .xlsx
8. you're done!