The widget for editing markdown has been replaced. It used to use a custom version of SimpleMDE called sealmde.
The format-on-paste functionality let you copy formatted text from e.g. Libreoffice Writer or Micro$oft Word and paste it. Then fragments that were originally in bold would be pasted wrapped in **, same for italics, bullet points, etc.
The code that handled this is in this commit:
https://github.com/sealcode/sealmde-markdown-editor/commit/95496cdc352c38816d8eef8320a72260765b12f7
This task is about recreating this functionality in the new Monaco based editor. Probably best to do this in the stimulus controller in sealgen: https://hub.sealcode.org/source/monaco-wrapper/browse/master/src/controllers/monaco.stimulus.ts$1