Hello @Draykov
Thank you for contacting the Canvas Community. We're sorry to hear you've been experiencing issues with New Quiz hyperlinks. Thank you for explaining your question in detail and you are right - as of now, internal hyperlinks within instructions linking back to the course on a New Quiz would render errors and broken for students. Currently, we have a list of features that we are working on but I don't see one specifically for this:
https://community.canvaslms.com/t5/Quizzes-Transition/gh-p/Quizzes-Transition
However, that isn't to say it won't be an improvement in the future as there are many changes and improvements we are still working on. It being an LTI is causing part of this issue, but there are also many other instances where teachers embed hyperlinks to internal course links, files, etc. that need to be updated after migrating an entire course. In theory, it should update but there isa number of factors (timeline of updating, published items, how it was added originally, etc) that can cause issues and we encourage teachers to run the link validator after they copy over an entire course:
https://community.canvaslms.com/t5/Instructor-Guide/How-do-I-validate-links-in-a-course/ta-p/1001
Whether you should discourage your teachers to not include internal links on NQ instructions is up to you. Right now, they would need to manually go in and update these links via edit and replace them with whatever current link is in the course so students do not get errors. If that is too much work or the teacher doesn't want to - they can set up an additional "page" for the NQ instructions as well. Hopefully this helps!