Michael,
It’s still an issue in the most current beta, it pastes the text as if it was a normal selection, not a block select.
T.
It took me a while to reproduce because there’s another bug there as well.
If you disable the copy in RTF option block select paste will work.
Another issue: If you have any of your styles’ font case set to anything other than Default it looks like copy of block select botches the selection.
I’ll log both of these.