Ah I was a little too quick with this reply and didn’t test this solution fully.
I’ve also been running into this problem and much preferred how things were setup in 5.6.
For the time being I’ve been using this css code. When a user clicks on a reusable block in a page/post, they’ll be directed to the top level reusable block settings and not be able to edit anything within it.
.block-library-block__reusable-block-container {
pointer-events: none;
}
Important to note that this needs to be part of an admin stylesheet.