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It only defaults to the root item the first time; after that, it defaults to the item that was previously selected in the dialog. To import at the current item in the Data Explorer pane with that option enabled, either
1) Cancel the selection dialog (Esc), then paste or Edit | Paste Special
or
2) copy, activate UR (default hotkey is Win+Z), then paste
You can also toggle the option via Tools | Quick Options, but you must activate UR first.
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