I've been running the nightly build for years (currently Build 3.4.20210218-nightly on macOS 11.2.1). A few weeks ago, pasting text with a newline at a shell prompt started pasting the newline but not executing the command. The full line is pasted, the cursor moves down to the next line, I have to press Return to get the command to execute. This problem did not start happening until a few weeks ago.
If I go to Session -> Terminal State and either turn off Paste Bracketing or do a Reset, this solves the problem but only for the next command. After the next command, Paste Bracketing is immediately turned back on and the problem exists.
I have Shell Integration enabled, but disabling it does not affect the problem.
Under Preferences -> General -> Selection I have "Copied text includes trailing newline" turned on. Under Edit -> Paste Special I have "Warn before multi-line paste" and "Warn before pasting one line ending in a newline at shell prompt" both turned off.
I have iTerm2 configured to start bash as my shell in all sessions, but my account still has zsh as its shell. Renaming both ~/.bashrc and ~/.bash_profile to get a default bash config does not help. The same problem occurs with zsh. However, the pasting-command-with-newline problem does NOT occur when I run tcsh.
Any ideas why pasting text with a newline doesn't execute the command, or why Paste Bracketing keeps turning itself on?