Duplicate Layer and Objects not working with Blocks

We can’t seem to get the “Duplicate Layer and Objects” command (from the context menu when you right click on a layer) to work for layers with blocks. We create design options by putting a model (often with blocks) on a layer, then duplicating the layer with objects to work on a new option. While the blocks are duplicated and put on a new layer, the objects inside each block still reference the original layer, so when the original layer is turned off all the blocks referencing it on the new layer disappear. Is there a better way to duplicate blocks and assign them to new layers without having to do so manually?