I just discovered that Bitdefender 2016 causes Clipmate to paste the incorrect clips back into Premiere Elements. Changing the Bitdefender antivirus settings from "Normal" to "Permissive" fixes the problem.
Now I'm wondering what else hasn't been working correctly because of Bitdefender. Before I changed to permissive settings, I added the whole Clipmate 7 folder to the exclusion list. Doing just that didn't fix the problem.
Since Bitdefender doesn't pop up a warning message, you could be running an application and not know that one of it's functions is being processed incorrectly.