Smart quotes get removed when pasting to PS7

[SteveL-MSFT]

Environment

PS version: 7.1.0-preview.3
PSReadline version: 2.1.0-beta2
os: 10.0.19041.1 (WinBuild.160101.0800)
PS file version: 7.1.0.0
HostName: ConsoleHost (Windows Terminal)
BufferWidth: 179
BufferHeight: 53

Steps to reproduce

Copy the script from: https://devblogs.microsoft.com/powershell/mandelbrot-one-liner/

Paste into Windows PowerShell
Paste into PowerShell 7 (doesn't matter if conhost or Windows Terminal)

Does't matter if CTRL-V or right click to paste

Expected behavior

Script runs like in Windows PowerShell

Actual behavior

ParserError:
Line |
   1 |  … ile(($y++) -lt 15) {for($x=0; ($x++) -lt 84; write-host ( .:-;!/>`)|& …
     |                                                                 ~
     | Missing closing ')' in expression.

The "smart quotes" around the string of printable characters get removed. Removing PSReadLine enables paste to work correctly. Paste with PSReadLine works fine on macOS.

[vexx32]

This was reported a couple years back already, I think. #760 is the same issue; seems like it affects quotes and dashes as well.

[lzybkr]

This doesn't reproduce in conhost or Windows Terminal if the output encoding is UTF8:

[Console]::OutputEncoding = [System.Text.Encoding]::UTF8

[daxian-dbw]

Does't matter if CTRL-V or right click to paste

When PSReadLine is imported, the issue only reproduce for me when pasting using Right Click, not when using ctrl+v.
@SteveL-MSFT are you able to reproduce using ctrl+v?

Right Click removes the smart quotes even after setting the console output encoding to UTF8. But once unload PSReadLine, Rigth Click works fine in both conhost and WIndows Terminal, even if the output encoding is not UTF8 (default output encoding is ibm437).

[daxian-dbw]

Further investigation shows this is likely caused by the call to Console.KeyAvailable. It somehow causes the next Unicode character input to be skipped. I opened dotnet/runtime#38966 and will mark this issue external.

[wswind]

It has been such a long time . I'm still waiting for this issue to be fixed #1771 (comment)