Huh? I think you have mixed up the terminology. The “no data lock-in” is true for anything that is related to flat text files on your computer, for example Markdown files handled by Obsidian. It basically means you can use those files in any app that can handle Markdown, and you are not bound to use Obsidian to edit them. If you move away from Obsidian those files will be just as usable in for example VSCode with Foam, Marked app, iA Writer etc.
This is unlike Evernote, which has their own proprietary format for their data, and also actually unlike some other Markdown based solutions like Notion, which adds all kinds of extra tags to each unit (and which you have to sit and delete afterwards if you wish to export/use it in any other app than Notion).
What you are describing has nothing to do with data lock-in though. Also, I don’t understand what doesn’t work. If I preview a file in Obsidian, I select the contents in the preview window within Obsidian, copy it and then open MS Word and paste it in, it retains headlines, links, bolded text etc. It looks like crap as it will have been pasted as HTML (which is what the Obsidian Preview renders, just like all Markdown preview software) and Word isn’t great for converting HTML in to something a user actually would like to keep, but hey, that falls on Microsoft, not Obsidian.
Your “hack” though turns it all in to raw text. That, by nature of the format, has no formatting. That is the point of raw text: to have no formatting. If you then paste that in to Word it will, of course, still be without formatting. I might misunderstand what you are trying to do though…?
