.dmg images copied to external drives are corrupted
I've created an encrypted .dmg image on my M1 mac (500MB, Mac OS Extended (case-sensitive, Journaled)). When I copy this file to an external usb drive (via the Finder) the copy looks good, size-wise. I can even open it and inspect its contents. When I check its md5 hash it matches the original file.
Now I unmount the usb drive and remount it. The file size is now much smaller, 17MB and the hash no longer matches. Tried this same process on several external drives both sd and spinning hardware all with plenty of space to copy to.
Tried this copying from the command line using "cp". Same corrupted results. All external drives are formatted Mac OS Extended (case-sensitive, Journaled).
rsync worked. The files on the drives once remounted were correct.
Finally, I created a new image APFS (Case-sensitive). This file seem top copy fine via the Finder.
Any idea what is going on? My M1 Mac is running Sonoma 14.6.1.
iMac 24″