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....using the Command-V shortcut just sends a Control-V to the console, instead of pasting any data to the guest.
Both those settings were already set to "Don't optimize for games" and the Command-V shortcut was enabled and mapped to Control-V on Linux.
I'm running Parallels 15 and have reinstalled the latest parallels tools software in the guest (15.1.2.47123). I am *not* running X, nor do I...