A look at terminal emulators, part 1

On zsh, the Ctrl-O is inserted literally. Are you perhaps still using the ancient oh-my-zsh safe-mode plugin? Since version 5.1, zsh has supported bracketed-paste natively without any plugins. The native support has significant advantages like also working from incremental history searches. It's enabled by default which was rather controversial, at least to begin with. To see if you have it check with typeset -p zle_bracketed_paste

If bash inteprets a Ctrl-O, even with enable-bracketed-paste then that's a readline bug. More likely, your configuration is wrong somehow. In my testing, I get a literal ^O in the line.