I didn't substitute my old preferences into the resources' folder yet to eliminate the possibility that something there is the issue.
After a computer reboot and starting KM, I had the same errors/issues as before. Oddly enough, after restarting KM (without a computer reboot) it kind of worked and was pasting the right actions. But, at the same time, it was also still throwing "Action Failed - Delete Past Clipboard 0 index out of range in macro" errors.
I restarted the computer to see if I could recreate the situation where it would work after a KM reboot, but its back to either not pasting anything or pasting the wrong (past selection) action.
At this point, I'm thinking about maybe doing a clean KM and KMFAM install to see if that works on my computer. Because I'm having problems on both my computers, I'm guessing that there is an issue with something being synced by KM. Would be interesting to see if KMFAM works after a clean install and breaks after starting syncing again.
Other than that, I'm wondering if my computers might be too slow to process something and the KMFAM needs a pause to prevent the macro from getting ahead of itself. I've had the issue with the action not pasting for several months and I remember having occasional success with repeatedly trying to paste the macro (at the time, I was thinking that maybe there just needed to be a little pause set in the code before the action gets pasted because the macro was getting ahead of itself). It's probably not that, but I thought I would mention it since that was my thinking before.
Thanks again for trying to help solve the problem. If you have anything else I could try, I'm happy to put in time troubleshooting as best I can.