I'm probably just not using it right, I had used another version in the past and that stopped working. I have it in the clipboard and run the macro and it fails. I am on macOS 10.13.6 (current version) and Keyboard Maestro 8.2.4 (latest version). I am probably just doing something wrong or not reading the instructions properly.
I have assigned a hot key to trigger it so it will paste in the clipboard AppleScript code so that probably doesn't work with your macro I am guessing.
I was able to get Paste AppleScript as Markdown working so I think I am good. Thank you Michael.