diff --git a/scar/utils.py b/scar/utils.py
index cb38fbe4..30a45bb7 100644
--- a/scar/utils.py
+++ b/scar/utils.py
@@ -23,6 +23,7 @@
 import tempfile
 import uuid
 import sys
+from copy import deepcopy
 from zipfile import ZipFile
 from io import BytesIO
 from typing import Optional, Dict, List, Generator, Union, Any
@@ -118,7 +119,7 @@ def merge_dicts(dict1: Dict, dict2: Dict) -> Dict:
     def merge_dicts_with_copy(dict1: Dict, dict2: Dict) -> Dict:
         """Merge 'dict1' and 'dict2' dicts into a new Dict.
         'dict2' has precedence over 'dict1'."""
-        result = dict1.copy()
+        result = deepcopy(dict1)
         for key, val in dict2.items():
             if val is not None:
                 if isinstance(val, dict) and key in result:
diff --git a/scar/version.py b/scar/version.py
index dc73d7d2..102633cf 100644
--- a/scar/version.py
+++ b/scar/version.py
@@ -12,4 +12,4 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-__version__ = '4.0.0'
+__version__ = '4.0.1'