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The behavior points to Excel using the Windows Paste Special dialog instead of Excel’s own Paste Special dialog. That is why Unicode Text and Text appear, and why formatting is not preserved.
The supported causes in this scenario are:
- The source and destination workbooks are open in different Excel instances
- When Excel runs multiple instances, it cannot use its internal copy/paste functionality.
- In that case, Excel falls back to the Windows Paste Special dialog, which does not offer Excel options such as Formulas, Values, Formats, or Comments.
- Fix: open both workbooks in the same Excel instance.
- An Excel setting or event/add-in is interfering with Paste Special
- Check File > Options > Advanced.
- Under Cut, copy and paste, make sure Show Paste Options button when content is pasted is enabled.
- If a workbook uses the
Worksheet_SelectionChangeevent, it can clear the clipboard and disable Paste Special. In that case, settingApplication.EnableEventstoFalseenables the option. - Third-party add-ins can also conflict with Paste Special.
- Browser or add-in conflict
- Close all browser instances and test again.
- Start Excel in Safe Mode by holding CTRL while starting Excel, then confirm the prompt.
- If paste works correctly in Safe Mode, re-enable add-ins one at a time until the conflicting add-in is identified. Leave that add-in disabled or uninstall it.
- Office build issue or damaged Office installation
- A reported Office 2016 issue affected copy/move behavior in a preview build and was fixed in released builds.
- Ensure affected systems are on a released Office build and fully updated.
- If the issue started after an update and persists across several systems, update Office first. If still unresolved, an Online Repair of Office is an appropriate next step.
Recommended rollout order for the affected systems:
- On one affected machine, verify whether users are copying between two files opened in different Excel instances.
- If yes, retest with both files opened from the same Excel window/process.
- Expected result: Excel’s normal Paste Special options return and formatting pastes correctly.
- Check the Excel paste setting:
- File > Options > Advanced > Cut, copy and paste
- Enable Show Paste Options button when content is pasted.
- Close all web browsers and retest.
- Start Excel in Safe Mode and test copy/paste within Excel.
- If fixed in Safe Mode, the likely cause is an add-in.
- Re-enable add-ins individually to find the one causing the issue.
- Update Office 2016 to the latest available released build.
- If the issue still remains on affected machines, perform an Online Repair of Office.
Based on the available support information, there is no documented common network/workgroup setting here that causes Excel to switch to Unicode Text paste behavior. The documented causes are Excel instance separation, clipboard/event interference, browser conflict, add-ins, or Office build/installation state.
For a safe broad fix across multiple systems, the lowest-risk sequence is:
- confirm single Excel instance usage,
- verify the paste option setting,
- test with browsers closed,
- test in Safe Mode,
- isolate add-ins,
- then update or repair Office.
References:
- You cannot paste any attributes into a workbook in another instance of Excel
- Paste Special option is missing or not working in Microsoft Office
- Paste options
- Excel not responding, hangs, freezes or stops working
- Unable to copy or move sheet in Excel 2016 (16.0.4229.1002)
- After the latest update 1 June 25, I cannot cut and paste anything, even in the same document. Suggestions please. - Microsoft Q&A