The big problem is that you're chewing up short term memory slots that used to hold the next thing you planned to do. For me I generally use only a couple slots for a single refactor because it's all muscle memory.
Additionally, it just takes a hell of a long time, which means you go from virtually no chance of interruption to a measurable one.
When I was young I had an exceptional short term memory and could pull off some crazy big refactor without introducing errors. But now it's normal at best, and also I rely far less on those sorts of feats, in part because I put a higher value on commit history readability.
Funnily enough, all of those are also problems with copy-and-paste. But they're much more likely to occur through copy-and-paste, because it's easy to do that without reviewing the code.
Transcription makes you think about what you're typing in and avoids the whole class of errors that arise from copy-and-paste. Transcribing code rather than pasting it is not a red flag.