It is enabled by default so that wouldn't be unlikely, but I was thinking more of the circumstances such as SSH tunnels, xclip or wl-clipboard and similar (or perhaps the most important one, version of micro itself)
I only used it locally, so there wasn't any other application in between. I used it on Windows but I don't have the version -though I always keep it up to date, so latest or minus one- or configuration now, yet I'll update you with details when I get back from vacation. Thanks!
https://github.com/zyedidia/micro/blob/master/runtime/help/o...
But even when enabled (like I have) it should indently correctly when pasting entire blocks.
If you'd like to share your setup/env/config I'd take a look at working out a patch