As designed YouTube video embed

It's not really that. It's that your text isn't technically a full URL because it doesn't have the http part. The embed system only automatically works if the text and the URL are the same.

So it you link http://www.youtube.com/watch?v=JugYYRd737I, it should work without issue:

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But linking www.youtube.com/watch?v=JugYYRd737I won't embed:

www.youtube.com/watch?v=JugYYRd737I

Copying from the browser's address bar should give you the former.
 
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