install a new OS this time around use Linux distro
That would be better, but:
How to prevent this1.
Don't use Windows, but we both know you're not going to change that.
I recently got this device. So a lot of software had to be reinstalled.
Where did you get this software? Official sources and official paid licenses, or some warez site or "friends"?
That's another reason to use Linux: no need to install hacked software.
I worry about windows defender not detecting it.
Microsoft has been selling unsecure software for decades. Why would you expect anything else now?
And this is the third time I have gotten infected with the clipboard virus.
You know what they say: "Insanity is doing the same thing over and over again and expecting different results." (the source of this quote seems to be unknown).
I don't know why I always end up with the particular virus. Though I don't know how to properly define this thing as a virus or malware. I don't use any third-party antivirus, but my Windows Defender is always on. So I have no idea how I got infected. Windows defender seems to not be working regarding this virus.
My guess: the malware is included in some of the software you install. Or you just download it again after a few days. Either way, stop doing that. If you have confirmed malware on your system, you can't be sure it hasn't collected more data. So change all your passwords and if you use a hot wallet, create a new seed phrase on a clean system and move your funds.