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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.).
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Have "Remote Desktop" running on the Mac, but do NOT have the session connected to the PC.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.
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