Yes, you also can upload html files as assets into App Inventor! There is only one special thing to consider: During development, you have to use the development path to the embedded html document:
file:///mnt/sdcard/AppInventor/assets/<NAME OF YOUR HTML FILE>.html
Before packaging the app, use the production path.
file:///android_asset/<NAME OF YOUR HTML FILE>.html
Copy file.Use this method to copy small files, for large files use the CopyAsync method instead. Prefix the filename with / (i.e. relative path) to copy a file on the SD card. For instance /myFile.txt will copy the file /mnt/sdcard/myFile.txt. To copy assets packaged with an application (also works for the Companion) start the fromFilename with // (two slashes). However you can't copy files to the assets. If a fileName starts with file:/// you can specify a complete path to the file.
I only use(d) compiled apks. I did not use the AI companion (w.r.t mentioned bugs in the companion and w.r.t. the "file:///android_asset" file path.)
I know the path file:///android_asset/ is only valid for a compiled apk. That's what I mentioned in my first post.
Your file extension did not recognize that path. That's when I got the error: "Sorry, file to copy does not exist."
Only after I changed the path from file:///android_asset/ to //, the compiled apk with your file extension could copy the file out of my assets.
So I think your file extension has some trouble seeing that file:///android_asset/ and // are indentical.