I tried the double drag and drop solution for a while, but it becomes very cumbersome when editing formulas etc. I did not want to disable Windows functionality because of a silly Matlab bug. So I found another solution:
Try to copy something, then in the error message read which folder is missing. Make a new folder in Temp with that name, and put a dummy file in it, so that it does not get deleted. Now copying works for the current Matlab session. It even worked after a restart of Matlab with the same script, at least for the time being.
Files in Temp tend to be temporary, so this procedure probably has to be repeated now and then, maybe after reboot or after changing active working directory or something. But it is better than not having copy/paste. And frankly better than spending hours upgrading Matlab too (if there is even a fix in the newest version)...
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