[ubuntu] cut-paste from Windows 7 host does not work to Ubuntu 16.04 on VirtualBox

I've installed Ubuntu 16.04 on VirtualBox 4.1.10 ruing on Windows 7.

Managed to get Guest Additions to work.
Shared clipboard is set to bidirectional.

All seems to work fine besides cut-and-paste, which does not work, namely, none of the following works on a terminal window:

1. Ctrl-V
2. Shift-Ins
3. Paste from terminal's menu.

Is this a known bug, or do I need to do something special to get cut-and-paste to work?