Hi @CaitlinJarvis can you provide a few more details?
I'm diving deep into testing Item Banks right now as I noticed there were many improvements so trying to see if they meet our needs. Happy to test to see I see the same thing. In general the standard behavior (expected) when I duplicate a New Quiz or copy it to a new course, the Item Banks don't copy, the new quiz points to the same global Item Banks so I haven't seen any image issues. I tried this and it seemed to work today.
Create a new quiz, create a new Item Bank, add a question with an image to the Item Bank. Link the quiz to the bank. Use "View as Student" to take the quiz.
Go into a different course, import the quiz. Use "View as Student" to take the quiz.
Melanie