I was initially confused by this too… there’s a topic where the feature was developed here: Idea: Paste links in the editor
So the idea is that you highlight some text, and then pasting a URL turns the highlighted text into the label for the link.
I’m not sure if it would make sense to disable the functionality if the highlighted text is already a URL (would the inconsistency be confusing)? or maybe this is a useful feature as-is and we just need to get used to the change?
Interested to hear if this becomes a common point of confusion.