You say you are running a “terminal based Linux CLI”. Are you running any graphical session manager on your VM, ot a straight console (non-GUI).
if it’s the latter (no GUI in the VM, straight console only), there’s no copy/paste available. Just as if you ran a system on a dumb terminal.
In this case a workaround would be to ssh into the VM using an application on the host. Then you should be able to copy/paste text to and from the VM.