Describe the bug
Pasting multiple paragraphs always creates Classic block.
To Reproduce
Expected behavior
Classic block should not appear.
I was unable to reproduce the problem using the testing steps provided. I tested with Firefox 61.0.2 on macOS 10.13.6.
To confirm, you are copying content from within one Gutenberg post back into the same post in a different location, correct?
May I ask what OS and browser version you are using?
I'm using Chrome 68.0.3440.106 on Windows 10.
Again, select two paragraphs within a page/post, copy and paste into a blank paragraph in the same page/post.
It consistently places two blank Classic blocks on the page, one before and one after the pasted text.
I can reproduce. Looks like this: https://i.imgur.com/5RmbT9x.png
Create 2 Paragraphs. The select the two paragraphs, which makes them highlighted in blue. Do CTRL-C and then CTRL-V inside the new paragraph below them. It does this. I wonder if the Gutenberg markup in the HTML is throwing off the copy since it might be duplicating existing markup? This is actual text being copied:
<!-- wp:paragraph -->
<p>This is Paragraph 1. This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1.聽 This is Paragraph 1. This is Paragraph 1. This is Paragraph 1. </p>
<!-- /wp:paragraph -->
<!-- wp:paragraph -->
<p>This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. This is paragraph 2. </p>
<!-- /wp:paragraph -->
By the way, using Firefox 61.0.2 in Windows 7 Pro.
@MarkRH thank you tons for testing!
I re-tested and confirmed this happens with Chrome 68 on Windows 10. Here is a screenshot showing the extra classic blocks as well as a copy of the resulting markup for reference:

Seen at https://madefortesting.com/wp-admin/post.php?post=517&action=edit tested with WordPress 4.9.8 and Gutenberg 3.7 using Chrome 68 on Windows 10 via browserstack.com. Note: also tested and confirmed with Gutenberg 3.8.0-rc.1.
<!-- wp:paragraph -->
<p>Paragraph one.</p>
<!-- /wp:paragraph -->
<!-- wp:paragraph -->
<p>Paragraph two.</p>
<!-- /wp:paragraph -->
<p><br>
<br>
<!--StartFragment--></p>
<!-- wp:paragraph -->
<p>Paragraph one.</p>
<!-- /wp:paragraph -->
<!-- wp:paragraph -->
<p>Paragraph two.</p>
<!-- /wp:paragraph -->
<p><!--EndFragment--><br>
<br>
</p>
I'm guessing those <!--StartFragment--> and <!--EndFragment--> comments are being introduced by Windows's clipboard implementation (cf their HTML Clipboard Format), and that's what's throwing off Gutenberg's paste/convert stack.
Looping in @iseulde.
Comments are not stripped if we detect Gutenberg comments. So somehow we need to strip them at the very start of raw handling.
Persists through 4.1.1.
Related issues:
copying and pasting into a Header block can result in an empty header block above the pasted header.
copying and pasting into a Quote block can result in an empty line before and after the pasted quote.
copying and pasting into a Table block can result in an empty line before the pasted content.
https://github.com/WordPress/gutenberg/issues/12654 indicates the same bug observed with pasting images.
Bump
@iseulde could it be added to 4.8?
This issue persists in Gutenberg 5.3.
Could someone share what is logged in the console, so I can work on a fix? I don't have Windows. :/
Give me a few minutes, please.
This seems fixed for me.
Hello @youknowriad
This is still happening to me in Wordpress 5.2.3.
At every multiple paragraph copy/pasting, classic blocks are inserted before and after.
Tested with Chrome 77.0.3865.90
@youknowriad Here is a gif

Did you try with the Gutenberg plugin installed? or WP 5.3 beta2?
@youknowriad Nop, only tested with this configuration
Wordpress 5.2.3
Chrome 77.0.3865.90
I've been using with a more recent version when I closed the ticket. that said, I'd appreciate confirmation.