I am unable to use the paste function in Word or Excel(from the edit menu or
right mouse key).

When I highlight a word, sentence or phrase to copy to another part of the
same doc and select paste it inserts a .bmp of the screen. Every single time
I hit the paste function the programs inserts a picture of the screen not
what I highlighted.

It appears that everything is saved as a .bmp to the clipboard.

In addition, I am unable to clear/delete the contents of my clipboard. I
select the clear all and it momentarily works as advertised but a few seconds
later all 24 items reappear in the clipboard.