I ran into this when trying to paste my generated password into the password field on some kind of financial site and I think it is still the most egregious case of security theater I’ve seen yet.
Anyway, you want the “don’t fuck with paste” extension, available on both chrome and firefox.
Nice, didn’t know about that one. I imagine there are side effects to disabling it globally though? Those goofy OTP code inputs implemented as six single digit inputs jumps to mind, they probably rely on the paste event. The extension works similarly but lets you only enable it for problematic sites.