It makes sense to paste your password when logging into an account, but from what I read this is just on the password reset. They probably want people to actually type their new password twice instead of typing it once and then copy/pasting for the second field.
It's not insane, but it does increase the burden on those of us who use password generators. There is NO excuse for the sloppiness of the implementation, however.
if you don't have something like mobile keepass(or you don't have a current password file, i don't think keepass for android can add passwords)
or the app prevents you from pasting the password, entering a long complicated password can be difficult. Pasting helps improve the likelyhood of long complicated passwords.