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We have some fixes related to this going into update 12.0.1.3 when it's available. It wil detect if there's a select and do Copy rather than sending in Ctrl-C to the child process. We've also added finer-grained control over when keys are sent into an OS Command or Debug I/O.

For now the work-arounds are: (1) Turn off Use Pseudo-Terminal in the Debug I/O Options menu, or (2) Use Shift-Ctrl-C, or (3) turn off the User Interface > Console Keys > Send Keys Directly to Console Tools preference or use the related preferences on that same preferences page to set up a custom key binding for the 'copy' command.