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I am trying to create an email using HTML paste, I know this option is available as I've used it before however this particular MID doesn't have the option available.
Is this something that needs to be enabled somewhere?
This is something I have experienced as well. Easiest solution is to put in a helpdesk ticket to SFMC Global Support. They will need to enable a permission on their end and that should allow you to have access to that option.