I am unable to copy and paste any KB content to anything else, whether that is Microsoft Word or Hudu itself. Support has told me that the proper way to copy part or all of an existing KB is to convert the original KB into a template.
There appears to be DRM-style restrictions preventing the ability to copy images to the clipboard and re-use them elsewhere. When copying and pasting back to Hudu, it appears to be copying the image but it is actually just inserting a reference to the original image.
I discovered this bug when I copied the content of one KB into another, then shared that second KB publicly. When opening the public link all of the copied pictures return Error 404. Yet, if I share out the original document all of the pictures will appear, revealing that the copied pictures are merely references to the same files and the error received was due to permissions.
This is incredibly frustrating and something that needs to be addressed.