I created a webapp first and the following code works to copy image from clipboard:
final imageBytes = await Pasteboard.image;
Web app though gives a popup for permission before pasting the image but works.
I converted the app to flutter chrome extension. I don't get any popup for permission and the imageBytes is null.
I have already added following permissions in manifest.json:
"permissions": ["clipboardRead", "clipboardWrite"]
[SOLVED] I had to add the permission from extension settings in "View Web Permissions". Changed "Clipboard permission" from "Ask" to "Allow" as shown in the image.