For example. If you select some text that is in Times New Roman 12 pt. Bold and use "Paste Style" to past it into something that is in Helvetica 14 pt. italic, the text you paste will retain the Times New Roman 12 pt. bold. If you select the same text and paste it using "Paste and Match Style, the text will be changed from Times New Roman 12 pt Bold to Helvetica 14 pt. Italic to match the existing format. In other words, exactly what Bob said here:
Paste the text with its current formatting into a new paragraph: Choose Edit > Paste, or press Command-V on the keyboard.
Paste and match the style of the text where you’re pasting: Choose Edit > Paste and Match Style.
On my end this is not how it works.
I'm testing the three different ways of pasting that are outlining in that help article linked above:
Command-V: Paste the contents of the Clipboard into the current document or app. This also works for files in the Finder.
Option-Command-V: Paste Style: Apply the copied style to the selected item.
Option-Shift-Command-V: Paste and Match Style: Apply the style of the surrounding content to the item pasted within that content.
The first one, as expected, pastes the content keep the original format/style.
The second one doesn't even work. Does nothing. I tested this in Text Edit and also Google Docs. Text Edit even has a dedicated keyboard shortcut for it, but the content never gets copied.
The third one, as expected, pastes the content but matches the format/style of the destination.