Entire document will be pasted into itself if "Use Temp File" is checked and you copy/cut and then paste. The copy itself is not duplicated, it pastes as expected into other word processors, just when pasting back into the document. Ctrl+Z will then undo the entire document paste, and the expected result will be present.
Please note that "Use Temp File" being unchecked fixes the issue.
Steps to reproduce:
Enable "Use Temp File" Setting
Copy some text in any text document in VS Code
Paste the text into the same document (or a different one)
Entire document will be pasted into itself if "Use Temp File" is checked and you copy/cut and then paste. The copy itself is not duplicated, it pastes as expected into other word processors, just when pasting back into the document. Ctrl+Z will then undo the entire document paste, and the expected result will be present.
Please note that "Use Temp File" being unchecked fixes the issue.
Steps to reproduce: