diff --git a/packages/block-library/src/cover/deprecated.js b/packages/block-library/src/cover/deprecated.js
index c5f430eead685..5e5fc64d12c16 100644
--- a/packages/block-library/src/cover/deprecated.js
+++ b/packages/block-library/src/cover/deprecated.js
@@ -400,8 +400,9 @@ const v12 = {
 	supports: v12BlockSupports,
 	isEligible( attributes ) {
 		return (
-			attributes.customOverlayColor !== undefined ||
-			attributes.overlayColor !== undefined
+			( attributes.customOverlayColor !== undefined ||
+				attributes.overlayColor !== undefined ) &&
+			attributes.isUserOverlayColor === undefined
 		);
 	},
 	migrate( attributes ) {
diff --git a/packages/block-library/src/cover/edit/index.js b/packages/block-library/src/cover/edit/index.js
index 3f68c08b632ac..ec62bd58a2c33 100644
--- a/packages/block-library/src/cover/edit/index.js
+++ b/packages/block-library/src/cover/edit/index.js
@@ -143,7 +143,10 @@ function CoverEdit( {
 				averageBackgroundColor
 			);
 			__unstableMarkNextChangeAsNotPersistent();
-			setAttributes( { isDark: newIsDark } );
+			setAttributes( {
+				isDark: newIsDark,
+				isUserOverlayColor: isUserOverlayColor || false,
+			} );
 		} )();
 		// Disable reason: Update the block only when the featured image changes.
 		// eslint-disable-next-line react-hooks/exhaustive-deps
@@ -201,6 +204,7 @@ function CoverEdit( {
 			useFeaturedImage: undefined,
 			dimRatio: newDimRatio,
 			isDark: newIsDark,
+			isUserOverlayColor: isUserOverlayColor || false,
 		} );
 	};