Problem description:

The current implementation of userEvent.paste(element, text, init, options) does:

1. Throw error if element is neither editable input nor textarea.
2. Do nothing on disabled.
3. Focus element without properly updating selection.
4. If element supports selection range and selection is 0,0 set selection so options.initialSelectionStart, options.initialSelectionEnd if given, element.value.length, element.value.length otherwise.
5. Fire paste event with user supplied EventInit init.
6. Return on readonly element
7. Input (inputType: 'insertFromPaste') text` at current range.

This does not reflect an interaction a user could perform.
It does not support contenteditable or properly honor selection range.
It does not support paste events outside of editable context.

Suggested solution:

Replace API with userEvent.paste(clipboardData?: DataTransfer | string) that:

1. If clipboardData is a string, create a DataTransfer object with it.
2. If clipboardData is undefined, try to read data from Clipboard API if available. (This step requires the new implementation to be async.)
3. If clipboardData is undefined and data could not be retrieved from Clipboard, reject.
4. Dispatch paste event.
5. If in editable context, insert the data into DOM and dispatch an input event.

This would allow
a) the user to paste outside of input/textarea.
b) the user to test workflows using Clipboard API if it is available. (Clipboard API could also be mocked in Jsdom.)
c) the user to paste non-text elements.
d) us to implement copy/paste of DOM elements in contenteditable later.