The D-Egg, an acronym for Dual optical sensors in an Ellipsoid Glass for Gen2, is one of the optical modules designed for future extensions of the IceCube experiment at the South Pole. The D-Egg has an elongated-sphere shape to maximize the photon-sensitive effective area while maintaining a narrow diameter to reduce the cost and the time needed for drilling of the deployment holes in the glacial ice for the optical modules at depths up to 2700 m. The D-Egg design is utilized for the IceCube Upgrade, the next stage of the IceCube project also known as IceCube-Gen2 Phase 1, where nearly half of the optical sensors to be deployed are D-Eggs. With two 8-inch high-quantum efficiency photomultiplier tubes (PMTs) per module, D-Eggs offer an increased effective area while retaining the successful design of the IceCube digital optical module (DOM). The convolution of the wavelength-dependent effective area and the Cherenkov emission spectrum provides an effective photodetection sensitivity that is 2.8 times larger than that of IceCube DOMs. The signal of each of the two PMTs is digitized using ultra-low-power 14-bit analog-to-digital converters with a sampling frequency of 240 MSPS, enabling a flexible event triggering, as well as seamless and lossless event recording of single-photon signals to multi-photons exceeding 200 photoelectrons within 10 ns. Mass production of D-Eggs has been completed, with 277 out of the 310 D-Eggs produced to be used in the IceCube Upgrade. In this paper, we report the design of the D-Eggs, as well as the sensitivity and the single to multi-photon detection performance of mass-produced D-Eggs measured in a laboratory using the built-in data acquisition system in each D-Egg optical sensor module.