I was surprised to find only a few solutions for this that were all paid, so I made a free and open source version.
CopyLasso is a native Swift app built with ScreenCaptureKit and Apple Vision. It's MIT-licensed, signed, and notarized.
To use it, just press your keybind and draw a bounding box around the text you want to copy. The text is recognized locally and copied to your clipboard.
Other features include copying QR codes and barcodes, multi-language recognition, and (if you opt-in) encrypted capture history.
Source: https://github.com/bennetthilberg/copylasso
Feedback and ideas for features to add appreciated!