Clipboard default set to Plaintext, but Standard not pasting with formatting

Hi. I'm experimenting with the clipboard manager (is there anything BTT can't do?!). Setting the default paste option to "Plaintext" (first image below) works as expected, however, if I paste an item that has formatting using the Standard option (second image), the text still is pasted as plain text without formatting. I expected it to be pasted with formatting. Am I misunderstanding what Standard means in this context?

If I change the default paste option back to "Standard", the formatted text will paste with formatting.

Happy to show a video if that's helpful. Thanks!