Blocking paste was supposed to discourage keeping your passwords in plain text on your desktop in 'my_secret_passwords.txt'. Now we have pw managers and people in a lot of places like big corp are lagging 10 years with policies.

Just like you have new NIST recommendation about not enforcing complexity. Big customers on the other hannd have it as number 1 requirement when they buy. So even if I wanted to have no complexity enforcement, I had to build in one...