diff --git a/apps/builder/app/builder/features/navigator/navigator-tree.tsx b/apps/builder/app/builder/features/navigator/navigator-tree.tsx
index 81b12525daad..bfd0d7bf14fe 100644
--- a/apps/builder/app/builder/features/navigator/navigator-tree.tsx
+++ b/apps/builder/app/builder/features/navigator/navigator-tree.tsx
@@ -442,6 +442,12 @@ const canDrag = (instance: Instance, instanceSelector: InstanceSelector) => {
   if (instanceSelector.length === 1) {
     return false;
   }
+
+  // Do not drag if the instance name is being edited
+  if ($editingItemSelector.get()?.join(",") === instanceSelector.join(",")) {
+    return false;
+  }
+
   if ($isContentMode.get()) {
     const parentId = instanceSelector[1];
     const parentInstance = $instances.get().get(parentId);
@@ -542,6 +548,20 @@ export const NavigatorTree = () => {
     }
   }, [selectedInstanceSelector]);
 
+  const selectInstanceAndClearSelection = (
+    instanceSelector: undefined | Instance["id"][],
+    event: React.MouseEvent | React.FocusEvent
+  ) => {
+    if (event.currentTarget.querySelector("[contenteditable]") === null) {
+      // Allow text selection and edits inside current TreeNode
+      // Outside if text is selected, it needs to be unselected before selecting the instance.
+      // Otherwise user will cmd+c the text instead of copying the instance.
+      window.getSelection()?.removeAllRanges();
+    }
+
+    selectInstance(instanceSelector);
+  };
+
   return (
     <ScrollArea
       direction="both"
@@ -558,8 +578,10 @@ export const NavigatorTree = () => {
             level={0}
             isSelected={selectedKey === ROOT_INSTANCE_ID}
             buttonProps={{
-              onClick: () => selectInstance([ROOT_INSTANCE_ID]),
-              onFocus: () => selectInstance([ROOT_INSTANCE_ID]),
+              onClick: (event) =>
+                selectInstanceAndClearSelection([ROOT_INSTANCE_ID], event),
+              onFocus: (event) =>
+                selectInstanceAndClearSelection([ROOT_INSTANCE_ID], event),
             }}
             action={
               <Tooltip
@@ -664,8 +686,10 @@ export const NavigatorTree = () => {
                     $blockChildOutline.set(undefined);
                   },
                   onMouseLeave: () => $hoveredInstanceSelector.set(undefined),
-                  onClick: () => selectInstance(item.selector),
-                  onFocus: () => selectInstance(item.selector),
+                  onClick: (event) =>
+                    selectInstanceAndClearSelection(item.selector, event),
+                  onFocus: (event) =>
+                    selectInstanceAndClearSelection(item.selector, event),
                   onKeyDown: (event) => {
                     if (event.key === "Enter") {
                       emitCommand("editInstanceText");
diff --git a/apps/builder/app/builder/features/pages/pages.tsx b/apps/builder/app/builder/features/pages/pages.tsx
index b309cb919c2e..ef5d8f618774 100644
--- a/apps/builder/app/builder/features/pages/pages.tsx
+++ b/apps/builder/app/builder/features/pages/pages.tsx
@@ -2,7 +2,6 @@ import { useEffect, useRef } from "react";
 import { useStore } from "@nanostores/react";
 import {
   Tooltip,
-  Box,
   Button,
   SmallIconButton,
   TreeNode,
@@ -13,6 +12,7 @@ import {
   TreeSortableItem,
   type TreeDropTarget,
   toast,
+  ScrollArea,
 } from "@webstudio-is/design-system";
 import {
   ChevronRightIcon,
@@ -313,7 +313,15 @@ const PagesTree = ({
   }
 
   return (
-    <Box css={{ overflowY: "auto", flexBasis: 0, flexGrow: 1 }}>
+    <ScrollArea
+      direction="both"
+      css={{
+        width: "100%",
+        overflow: "hidden",
+        flexBasis: 0,
+        flexGrow: 1,
+      }}
+    >
       <TreeRoot>
         {flatPagesTree.map((item, index) => {
           const handleExpand = (isExpanded: boolean, all: boolean) => {
@@ -435,7 +443,7 @@ const PagesTree = ({
           );
         })}
       </TreeRoot>
-    </Box>
+    </ScrollArea>
   );
 };
 
diff --git a/apps/builder/app/shared/copy-paste/init-copy-paste.ts b/apps/builder/app/shared/copy-paste/init-copy-paste.ts
index 4d084212d3d1..07988e48e01c 100644
--- a/apps/builder/app/shared/copy-paste/init-copy-paste.ts
+++ b/apps/builder/app/shared/copy-paste/init-copy-paste.ts
@@ -49,23 +49,10 @@ const validateClipboardEvent = (event: ClipboardEvent) => {
   // Allows native selection of text in the Builder panels, such as CSS Preview.
   if (event.type === "copy") {
     const isInBuilderContext = window.self === window.top;
+    const selection = window.getSelection();
 
-    if (isInBuilderContext) {
-      // Note on event.target:
-      //
-      //   The spec (https://w3c.github.io/clipboard-apis/#to-fire-a-clipboard-event)
-      //   says that if the context is not editable, the target should be the focused node.
-      //
-      //   But in practice it seems that the target is based
-      //   on where the cursor is, rather than which element has focus.
-      //   For example, if a <button> has focus, the target is the <body> element.
-      //   If some text is selected, the target is a wrapping element of the text.
-      //   (at least in Chrome).
-
-      // We are using the behavior described above: if some text is selected, the target is usually (at least in the cases we need) not the body.
-      if (event.target !== window.document.body) {
-        return false;
-      }
+    if (isInBuilderContext && selection && selection.isCollapsed === false) {
+      return false;
     }
   }
 
diff --git a/apps/builder/app/shared/data-variables.ts b/apps/builder/app/shared/data-variables.ts
index 82fe73db2032..c4f0f4a6ac1b 100644
--- a/apps/builder/app/shared/data-variables.ts
+++ b/apps/builder/app/shared/data-variables.ts
@@ -270,7 +270,7 @@ export const findUnsetVariableNames = ({
 
   for (const dataSource of dataSources.values()) {
     if (
-      instanceIds.has(dataSource.scopeInstanceId) &&
+      instanceIds.has(dataSource.scopeInstanceId ?? "") &&
       dataSource.type === "resource"
     ) {
       resourceIds.add(dataSource.resourceId);
@@ -359,7 +359,7 @@ export const restoreTreeVariablesMutable = ({
 
   for (const dataSource of dataSources.values()) {
     if (
-      instanceIds.has(dataSource.scopeInstanceId) &&
+      instanceIds.has(dataSource.scopeInstanceId ?? "") &&
       dataSource.type === "resource"
     ) {
       resourceIds.add(dataSource.resourceId);
diff --git a/apps/builder/app/shared/instance-utils.ts b/apps/builder/app/shared/instance-utils.ts
index da4e8be4ca15..fd174e5b004c 100644
--- a/apps/builder/app/shared/instance-utils.ts
+++ b/apps/builder/app/shared/instance-utils.ts
@@ -603,7 +603,7 @@ export const extractWebstudioFragment = (
   const fragmentResourceIds = new Set<Resource["id"]>();
   const unsetNameById = new Map<DataSource["id"], DataSource["name"]>();
   for (const dataSource of dataSources.values()) {
-    if (fragmentInstanceIds.has(dataSource.scopeInstanceId)) {
+    if (fragmentInstanceIds.has(dataSource.scopeInstanceId ?? "")) {
       fragmentDataSources.set(dataSource.id, dataSource);
       if (dataSource.type === "resource") {
         fragmentResourceIds.add(dataSource.resourceId);
@@ -892,7 +892,7 @@ export const insertWebstudioFragmentCopy = ({
     const usedResourceIds = new Set<Resource["id"]>();
     for (const dataSource of fragment.dataSources) {
       // insert only data sources within portal content
-      if (instanceIds.has(dataSource.scopeInstanceId)) {
+      if (instanceIds.has(dataSource.scopeInstanceId ?? "")) {
         dataSources.set(dataSource.id, dataSource);
         if (dataSource.type === "resource") {
           usedResourceIds.add(dataSource.resourceId);
@@ -984,13 +984,13 @@ export const insertWebstudioFragmentCopy = ({
   for (let dataSource of fragment.dataSources) {
     const { scopeInstanceId } = dataSource;
     // insert only data sources within portal content
-    if (fragmentInstanceIds.has(scopeInstanceId)) {
+    if (fragmentInstanceIds.has(scopeInstanceId ?? "")) {
       const newDataSourceId = nanoid();
       newDataSourceIds.set(dataSource.id, newDataSourceId);
       dataSource = structuredClone(unwrap(dataSource));
       dataSource.id = newDataSourceId;
       dataSource.scopeInstanceId =
-        newInstanceIds.get(scopeInstanceId) ?? scopeInstanceId;
+        newInstanceIds.get(scopeInstanceId ?? "") ?? scopeInstanceId;
       if (dataSource.type === "resource") {
         const newResourceId = nanoid();
         newResourceIds.set(dataSource.resourceId, newResourceId);
diff --git a/packages/feature-flags/src/flags.ts b/packages/feature-flags/src/flags.ts
index 8355e6d6050d..2275d56ebf3a 100644
--- a/packages/feature-flags/src/flags.ts
+++ b/packages/feature-flags/src/flags.ts
@@ -9,4 +9,4 @@ export const staticExport = false;
 export const contentEditableMode = false;
 export const command = false;
 export const headSlotComponent = false;
-export const stylePanelModes = false;
+export const stylePanelModes = true;
diff --git a/packages/sdk/src/schema/data-sources.ts b/packages/sdk/src/schema/data-sources.ts
index 003a8a82ceaf..660c809d7e05 100644
--- a/packages/sdk/src/schema/data-sources.ts
+++ b/packages/sdk/src/schema/data-sources.ts
@@ -30,20 +30,25 @@ export const DataSource = z.union([
   z.object({
     type: z.literal("variable"),
     id: DataSourceId,
-    scopeInstanceId: z.string(),
+    // The instance should always be specified for variables,
+    // however, there was a bug in the embed template
+    // which produced variables without an instance
+    // and these variables will fail validation
+    // if we make it required
+    scopeInstanceId: z.string().optional(),
     name: z.string(),
     value: DataSourceVariableValue,
   }),
   z.object({
     type: z.literal("parameter"),
     id: DataSourceId,
-    scopeInstanceId: z.string(),
+    scopeInstanceId: z.string().optional(),
     name: z.string(),
   }),
   z.object({
     type: z.literal("resource"),
     id: DataSourceId,
-    scopeInstanceId: z.string(),
+    scopeInstanceId: z.string().optional(),
     name: z.string(),
     resourceId: z.string(),
   }),