Changing that setting has no impact on this issue - as confirmed by Aditya, it is actually a bug.
But when reading the bug report, I see there IS a workaround, of sorts: You can use CTRL-X (cut) instead of CTRL-C (copy), the paste it back to the original position before pasting it into the new position. Messy, but maybe a little bit quicker than using CTRL-C and then delete the double quotes etc.
I any case, I hope this regression bug will be fixed asap.
Aditya, thank you very much for clarifying that the issue has been reported and accepted as a bug.
