diff --git a/blocks/html/block_html.php b/blocks/html/block_html.php
index 2e77ca94889..a771244f8d4 100644
--- a/blocks/html/block_html.php
+++ b/blocks/html/block_html.php
@@ -155,11 +155,11 @@ class block_html extends block_base {
     public function instance_copy($fromid) {
         $fromcontext = context_block::instance($fromid);
         $fs = get_file_storage();
-        // This extra check if file area is empty adds one query if it is not empty but saves several if it is.
-        if (!$fs->is_area_empty($fromcontext->id, 'block_html', 'content', 0, false)) {
-            $draftitemid = 0;
-            file_prepare_draft_area($draftitemid, $fromcontext->id, 'block_html', 'content', 0, array('subdirs' => true));
-            file_save_draft_area_files($draftitemid, $this->context->id, 'block_html', 'content', 0, array('subdirs' => true));
+        // Do not use draft files hacks outside of forms.
+        $files = $fs->get_area_files($fromcontext->id, 'block_html', 'content', 0, 'id ASC', false);
+        foreach ($files as $file) {
+            $filerecord = ['contextid' => $this->context->id];
+            $fs->create_file_from_storedfile($filerecord, $file);
         }
         return true;
     }
diff --git a/blocks/html/tests/block_html_test.php b/blocks/html/tests/block_html_test.php
new file mode 100644
index 00000000000..3c94431fe65
--- /dev/null
+++ b/blocks/html/tests/block_html_test.php
@@ -0,0 +1,96 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+namespace block_html;
+
+/**
+ * Unit test for block_html class.
+ *
+ * @package   block_html
+ * @copyright 2022 Open LMS (https://www.openlms.net/)
+ * @author    Petr Skoda
+ * @license   http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ *
+ * @coversDefaultClass \block_html
+ */
+class block_html_test extends \advanced_testcase {
+    /**
+     * Tests instance files copying.
+     * @covers ::instance_copy
+     */
+    public function test_instance_copy() {
+        global $USER;
+        $this->resetAfterTest();
+
+        $this->setAdminUser();
+        $fs = get_file_storage();
+
+        $course = $this->getDataGenerator()->create_course();
+        $block1 = $this->create_block($course);
+        $itemid = file_get_unused_draft_itemid();
+        $fs = get_file_storage();
+        $usercontext = \context_user::instance($USER->id);
+        $fs->create_file_from_string(['component' => 'user', 'filearea' => 'draft',
+            'contextid' => $usercontext->id, 'itemid' => $itemid, 'filepath' => '/',
+            'filename' => 'file.txt'], 'File content');
+        $data = (object)['title' => 'Block title', 'text' => ['text' => 'Block text',
+            'itemid' => $itemid, 'format' => FORMAT_HTML]];
+        $block1->instance_config_save($data);
+        $this->assertTrue($fs->file_exists($block1->context->id, 'block_html', 'content', 0, '/', 'file.txt'));
+
+        $block2 = $this->create_block($course);
+        $this->assertFalse($fs->file_exists($block2->context->id, 'block_html', 'content', 0, '/', 'file.txt'));
+
+        $this->setUser(null);
+        $block2->instance_copy($block1->instance->id);
+        $this->assertTrue($fs->file_exists($block2->context->id, 'block_html', 'content', 0, '/', 'file.txt'));
+    }
+
+    /**
+     * Constructs a page object for the test course.
+     *
+     * @param \stdClass $course Moodle course object
+     * @return \moodle_page Page object representing course view
+     */
+    protected static function construct_page($course): \moodle_page {
+        $context = \context_course::instance($course->id);
+        $page = new \moodle_page();
+        $page->set_context($context);
+        $page->set_course($course);
+        $page->set_pagelayout('standard');
+        $page->set_pagetype('course-view');
+        $page->blocks->load_blocks();
+        return $page;
+    }
+
+    /**
+     * Creates an HTML block on a course.
+     *
+     * @param \stdClass $course Course object
+     * @return \block_html Block instance object
+     */
+    protected function create_block($course): \block_html {
+        $page = self::construct_page($course);
+        $page->blocks->add_block_at_end_of_default_region('html');
+
+        // Load the block.
+        $page = self::construct_page($course);
+        $page->blocks->load_blocks();
+        $blocks = $page->blocks->get_blocks_for_region($page->blocks->get_default_region());
+        $block = end($blocks);
+        return $block;
+    }
+}