Copy files as text with system clipboard

FileClipboard.ps1

function ClipFile {
    param(
        [Parameter(Mandatory = $true)]
        [ValidateNotNullOrEmpty()]
        [string]$FilePath
    )
    try {
        $Item = Get-Item -Path $FilePath -ErrorAction Stop
    }
    catch {
        Write-Warning "Cannot find path '$($FilePath)'"
        return
    }
    $bytes = [System.IO.File]::ReadAllBytes($Item.FullName)
    $b64 = [System.Convert]::ToBase64String($bytes)
    $payload = $Item.Name + ':' + $b64
    $payload | Set-Clipboard
}

function PasteFile {
    param(
        [Parameter(Mandatory = $false)]
        [ValidateNotNullOrEmpty()]
        [string]$FilePath
    )
    $payload = Get-Clipboard
    try {
        $items = $payload -split ':'
        if ($items.Length -ne 2) {
            throw [System.ArgumentException]"Invalid format"
        }
        $bytes = [System.Convert]::FromBase64String($items[1])
    }
    catch {
        Write-Warning "Failed to decode clipboard content. Make sure to use ClipFile first."
        return
    }
    $path = if ($FilePath) {
        $ExecutionContext.SessionState.Path.GetUnresolvedProviderPathFromPSPath($FilePath)
    }
    else {
        Join-Path $PWD.Path $items[0]
    }
    [IO.File]::WriteAllBytes($path, $bytes)
}

Add context menu entry to Windows Explorer

Windows Registry Editor Version 5.00

[HKEY_CURRENT_USER\SOFTWARE\Classes\*\shell\ClipFile]
"icon"="C:\\Program Files\\PowerShell\\7\\pwsh.exe"

[HKEY_CURRENT_USER\SOFTWARE\Classes\*\shell\ClipFile\command]
@="\"C:\\Program Files\\PowerShell\\7\\pwsh.exe\" -WindowStyle Hidden -Command \"ClipFile '%1'\""

[HKEY_CURRENT_USER\SOFTWARE\Classes\Directory\Background\shell\PasteFile]
"icon"="C:\\Program Files\\PowerShell\\7\\pwsh.exe"

[HKEY_CURRENT_USER\SOFTWARE\Classes\Directory\Background\shell\PasteFile\command]
@="\"C:\\Program Files\\PowerShell\\7\\pwsh.exe\" -WindowStyle Hidden -Command \"PushLocation '%V'; PasteFile\""

[HKEY_CURRENT_USER\SOFTWARE\Classes\CLSID\{86ca1aa0-34aa-4e8b-a509-50c905bae2a2}\InprocServer32]
@=""