In the 'Edit PC' pop-up, there is a set of tabs ' General | Display | Devices & Audio | Folders'.From the 'Connections' menu, select 'Edit PC.' (If you don't see the 'Edit PC' choice, then you did not correctly select the PC icon, as per prior step above.). The drop down for the 'Connections' menu should present a choice labeled 'Edit PC'.In the application menu bar, which is always at the top of the screen on a Mac, select the 'Connections' menu.
In my case, I have only a single connection configured, so there is just one icon, so I just made sure that this icon is selected.
To get cut-and-paste to allow transferring clipboard data between the Mac and the PC, I did the following: The PC I am connecting to is a Windows Server 2008 R2 DataCenter copyright 2009. The year is 2021, and I have Microsoft Remote Desktop Version 10.6.3 running on a Mac OS X Catalina OS X 10.15.7. OK, I got transfer via clipboard to work.