This change is noted in Canvas Deploy Notes (2020-09-09)
With RCE Enhancements enabled, trying to update the link for a hyperlinked image removes the link altogether
Instead it should update the link to what is set in Link Options.
Prerequisites: a course with the RCE Enhancements feature
Create a Page - upload and embed an image on the page
Using the hyperlink tool, link the image to either an external link or a course link
click the image and click 'link options'
Change the target url (or don't)
Click Done an notice that it removes the hyperlink that was previously present on the image