diff --git a/package.json b/package.json
index 7af5c99baa9..090b3230876 100644
--- a/package.json
+++ b/package.json
@@ -252,7 +252,7 @@
     "@grafana/prometheus": "workspace:*",
     "@grafana/runtime": "workspace:*",
     "@grafana/saga-icons": "workspace:*",
-    "@grafana/scenes": "^4.10.0",
+    "@grafana/scenes": "^4.12.0",
     "@grafana/schema": "workspace:*",
     "@grafana/sql": "workspace:*",
     "@grafana/ui": "workspace:*",
diff --git a/public/app/features/dashboard-scene/panel-edit/PanelOptions.tsx b/public/app/features/dashboard-scene/panel-edit/PanelOptions.tsx
index a7f68110266..7da739a385a 100644
--- a/public/app/features/dashboard-scene/panel-edit/PanelOptions.tsx
+++ b/public/app/features/dashboard-scene/panel-edit/PanelOptions.tsx
@@ -23,7 +23,7 @@ interface Props {
 export const PanelOptions = React.memo<Props>(({ vizManager, searchQuery, listMode, data }) => {
   const { panel, sourcePanel, repeat } = vizManager.useState();
   const parent = sourcePanel.resolve().parent;
-  const { options, fieldConfig } = panel.useState();
+  const { options, fieldConfig, _pluginInstanceState } = panel.useState();
 
   // eslint-disable-next-line react-hooks/exhaustive-deps
   const panelFrameOptions = useMemo(
@@ -42,10 +42,10 @@ export const PanelOptions = React.memo<Props>(({ vizManager, searchQuery, listMo
       data,
       plugin: plugin,
       eventBus: panel.getPanelContext().eventBus,
-      instanceState: panel.getPanelContext().instanceState!,
+      instanceState: _pluginInstanceState,
     });
     // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, [panel, options, fieldConfig]);
+  }, [panel, options, fieldConfig, _pluginInstanceState]);
 
   const libraryPanelOptions = useMemo(() => {
     if (parent instanceof LibraryVizPanel) {
diff --git a/public/app/features/dashboard-scene/scene/setDashboardPanelContext.ts b/public/app/features/dashboard-scene/scene/setDashboardPanelContext.ts
index 579f74d2a55..b94b3f7e2aa 100644
--- a/public/app/features/dashboard-scene/scene/setDashboardPanelContext.ts
+++ b/public/app/features/dashboard-scene/scene/setDashboardPanelContext.ts
@@ -121,11 +121,6 @@ export function setDashboardPanelContext(vizPanel: VizPanel, context: PanelConte
     //return onUpdatePanelSnapshotData(this.props.panel, frames);
     return Promise.resolve(true);
   };
-
-  // Backward compatibility with id
-  context.instanceState = {
-    legacyPanelId: getPanelIdForVizPanel(vizPanel),
-  };
 }
 
 function getBuiltInAnnotationsLayer(scene: DashboardScene): dataLayers.AnnotationsDataLayer | undefined {
diff --git a/yarn.lock b/yarn.lock
index dfb3a877044..b94dd695064 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -4180,7 +4180,7 @@ __metadata:
   languageName: unknown
   linkType: soft
 
-"@grafana/scenes@npm:^4.10.0":
+"@grafana/scenes@npm:^4.12.0":
   version: 4.12.0
   resolution: "@grafana/scenes@npm:4.12.0"
   dependencies:
@@ -18599,7 +18599,7 @@ __metadata:
     "@grafana/prometheus": "workspace:*"
     "@grafana/runtime": "workspace:*"
     "@grafana/saga-icons": "workspace:*"
-    "@grafana/scenes": "npm:^4.10.0"
+    "@grafana/scenes": "npm:^4.12.0"
     "@grafana/schema": "workspace:*"
     "@grafana/sql": "workspace:*"
     "@grafana/tsconfig": "npm:^1.3.0-rc1"
@@ -26208,7 +26208,20 @@ __metadata:
   languageName: node
   linkType: hard
 
-"rc-util@npm:^5.15.0, rc-util@npm:^5.16.1, rc-util@npm:^5.21.0, rc-util@npm:^5.24.4, rc-util@npm:^5.27.0, rc-util@npm:^5.36.0, rc-util@npm:^5.37.0, rc-util@npm:^5.38.0, rc-util@npm:^5.38.1":
+"rc-util@npm:^5.15.0, rc-util@npm:^5.16.1, rc-util@npm:^5.21.0, rc-util@npm:^5.24.4, rc-util@npm:^5.27.0, rc-util@npm:^5.37.0, rc-util@npm:^5.38.0, rc-util@npm:^5.38.1":
+  version: 5.38.2
+  resolution: "rc-util@npm:5.38.2"
+  dependencies:
+    "@babel/runtime": "npm:^7.18.3"
+    react-is: "npm:^18.2.0"
+  peerDependencies:
+    react: ">=16.9.0"
+    react-dom: ">=16.9.0"
+  checksum: 10/f8d8b21d0ed09de6fcf6c24dc19bf82f8f1fd089a625d35fd399626280ed33e73b9a703aa78f1a09ccd40b83f50e73bbc993adf892355a01857d3a1bb83e0958
+  languageName: node
+  linkType: hard
+
+"rc-util@npm:^5.36.0":
   version: 5.39.1
   resolution: "rc-util@npm:5.39.1"
   dependencies: