Previously, pasted image would be placed at top-left of image. This was quite annoying when you were pasted while zoomed in on the image. With this change, the pasted image is placed at displayed top-left point in the scrolled window.
Pasted images go to displayed top-left point in scrolled window
It seems like the selection outline still appears in the original location for me, although the pasted image is correctly positioned.
Fixed positioning of selection rectangle for previous commit