Bad auto indent of line to previous code block when pasting at the beginning of the line

If a line is below a code block (if, for, try def etc) but not part of the code block and you paste something where the selection start is at the beginning of the line, the line will auto indent to be a part of the code block. This does not occur if the code block ends with return, break, continue etc.

Environment data

Version: 1.37.0 (user setup) Commit: 036a6b1d3ac84e5ca96a17a44e63a87971f8fcc8 Date: 2019-08-08T02:33:50.993Z Electron: 4.2.7 Chrome: 69.0.3497.128 Node.js: 10.11.0 V8: 6.9.427.31-electron.0 OS: Windows_NT x64 10.0.17763 Python Extension: 2019.8.29288 Python Language Server: 0.3.46

Expected behaviour

if 1 == 1:
    print('This line belongs to the if')
newvar = 'not part of if'

Actual behaviour

For pasting at beginning of line (see 3. below)

if 1 == 1:
    print('This line belongs to the if')
    newvarnewline = 'not part of if'

For pasting over newline (see 4. below)

if 1 == 1:
    print('This line belongs to the if')
    newvar = 'not part of if'

Steps to reproduce:

1. Start with these lines:

if 1 == 1:
    print('This line belongs to the if')
newline = 'not part of if'

1. Copy to the clipboard this text: newvar
2. Paste the text at the beginning of the line: |newline = 'not part of if' (| symbolizes where the cursor is before paste)
3. Alternatively: Highlight newline and paste over it with copied text.

[luabud]

We’re going to push a hot fix for this soon, but if anyone would like to try it out ahead of time, you can use the Insiders build (here or by opting-in the Insiders program as a daily basis, more details about it in the blog post)

[ericsnowcurrently]

I was able to verify that the example from @WhistleWhileYouWork works now (on both Linux and Windows).