diff --git a/packages/block-editor/src/components/block-list/block-selection-button.js b/packages/block-editor/src/components/block-list/block-selection-button.js
index 224e6f6b3ca8aa..25147af72e5501 100644
--- a/packages/block-editor/src/components/block-list/block-selection-button.js
+++ b/packages/block-editor/src/components/block-list/block-selection-button.js
@@ -47,11 +47,12 @@ function BlockSelectionButton( {
 			const { name, attributes } = __unstableGetBlockWithoutInnerBlocks(
 				clientId
 			);
-			return { index, name, attributes, isBlockMovingMode };
+			const blockMovingMode = isBlockMovingMode();
+			return { index, name, attributes, blockMovingMode };
 		},
 		[ clientId, rootClientId ]
 	);
-	const { index, name, attributes, isBlockMovingMode } = selected;
+	const { index, name, attributes, blockMovingMode } = selected;
 	const { setNavigationMode, removeBlock } = useDispatch(
 		'core/block-editor'
 	);
@@ -82,7 +83,7 @@ function BlockSelectionButton( {
 	const classNames = classnames(
 		'block-editor-block-list__block-selection-button',
 		{
-			'is-navigate-mode': !! isBlockMovingMode(),
+			'is-block-moving-mode': !! blockMovingMode,
 		}
 	);
 
diff --git a/packages/block-editor/src/components/block-list/style.scss b/packages/block-editor/src/components/block-list/style.scss
index 97241d5fbd5246..df02f73712c791 100644
--- a/packages/block-editor/src/components/block-list/style.scss
+++ b/packages/block-editor/src/components/block-list/style.scss
@@ -208,9 +208,12 @@
 }
 
 
-.is-navigate-mode.block-editor-block-list__breadcrumb {
+.is-block-moving-mode.block-editor-block-list__breadcrumb {
 	// Should be invisible but not unfocusable.
 	opacity: 0;
+	font-size: 1px;
+	height: 1px;
+	padding: 0;
 }
 
 /**
diff --git a/packages/block-editor/src/components/writing-flow/index.js b/packages/block-editor/src/components/writing-flow/index.js
index e4473b6f3bbfdf..205c7a0fa3efbc 100644
--- a/packages/block-editor/src/components/writing-flow/index.js
+++ b/packages/block-editor/src/components/writing-flow/index.js
@@ -451,7 +451,10 @@ export default function WritingFlow( { children } ) {
 					)
 				);
 			}
-
+			if ( isEscape && startingBlockClientId ) {
+				setBlockMovingMode( null );
+				setCanInsertMovingBlock( false );
+			}
 			if ( ( isEnter || isSpace ) && startingBlockClientId ) {
 				const sourceRoot = getBlockRootClientId(
 					startingBlockClientId