"paste with formatting" by default is a mistake. the thing you're pasting from and the thing you're pasting to inevitably have different ideas about what formatting is relevant / possible in the given textareas you're copying from / pasting to. it's almost always better to just paste without formatting and then fix formatting (so, the default should have been flipped, but the ship has sailed).

I played around with using hammerspoon to send cmd-shift-v whenever I typed cmd-v but I really needed to make it change depending on which app I was pasting into and that was just past my annoyance threshold.