Inclusion Criteria:

* Newly diagnosed:

* Therapy-related acute myeloid leukemia (AML)
* AML with antecedent myelodysplastic syndrome (MDS) or chronic myelomonocytic leukemia (CMML)
* AML with MDS-related changes (as per World Health Organization \[WHO\])
* Have an Eastern Cooperative Oncology Group (ECOG) performance status of =\< 2
* Plasma creatinine =\< 1.5 x upper limit of normal (ULN)
* Total bilirubin \< 2.0 mg/dL
* Serum alanine aminotransferase and aspartate aminotransferase \< 3 x ULN
* Left ventricular ejection fraction by echocardiogram or multiple-gated acquisition \>= 50%
* Participants of child-bearing potential must agree to use adequate contraceptive methods (e.g., hormonal or barrier method of birth control; abstinence) prior to study entry. Should a woman become pregnant or suspect she is pregnant while she or her partner is participating in this study, she should inform her treating physician immediately
* Women of childbearing potential must have a negative serum or urine pregnancy test within 72 hours prior to enrollment and commit to two forms of birth control
* Men must use a latex condom during any sexual contact with women of childbearing potential
* Willing to adhere to protocol specific requirements
* Participant or legal representative must understand the investigational nature of this study and sign an Independent Ethics Committee/Institutional Review Board approved written informed consent form prior to receiving any study related procedure

Exclusion Criteria:

* Prior treatment of AML
* Known clinically active central nervous system (CNS) leukemia
* Core-binding factor leukemia
* Acute promyelocytic leukemia
* Uncontrolled other malignancy
* Prior anthracycline exposure \> 368 mg/m\^2 of daunorubicin or equivalent
* Cardiovascular disease resulting in heart failure (New York Heart Association class III or IV), unstable angina (angina symptoms at rest), or new onset angina (began within the last 3 months) or myocardial infarction within the past 6 months
* Hypersensitivity to cytarabine, daunorubicin, or liposomal drugs
* Known active HIV infection
* Known history of active hepatitis B or C infection
* Pre-existing liver disease (e.g. cirrhosis, chronic hepatitis B or C, nonalcoholic steatohepatitis, sclerosing cholangitis)
* Evidence of ongoing, uncontrolled systemic infection
* Pregnant or breastfeeding women
* Subject with concurrent severe and/or uncontrolled medical or psychiatric conditions that in the opinion of the investigator may impair the participation in the study or the evaluation of safety and/or efficacy
* History of Wilson disease or other copper-handling disorders
* Any condition which in the investigator's opinion deems the participant an unsuitable candidate to receive study drug