The issue was that the wrong flag was passed to `ANIM_nla_mapping_apply_if_needed_fcurve` resulting in the handles not moved back in this method. This issue was only visible when pasting on top of a single keyframe, or when the key had free handles. That is because the handles would be recalculated otherwise. Pull Request: https://projects.blender.org/blender/blender/pulls/140542