If you highlight a piece of text from the the chat window, click open the context menu and select ‘copy’, it seems that a) it doesn’t actually copy the selected text or b) the ‘paste’ function doesn’t work when trying to paste the ‘copied’ text to somewhere. Using the ‘insert to cursor’ does work but the above is needed, for example, for copying something to a command line (which if course should be supported directly as well - ref. Github Copilot).
Using latest version of the Cody VS Code plugin and latest version of VS Code.