The solution to our problem was to change the
var pubTarget = new PublicationTarget(new TcmUri(_tcmPreview), item.Session);
var pubTarget = new TargetType(new TcmUri(_tcmPreview), item.Session)
Seems that in the version 9.5 PublicationTarget is not needed anymore
You'd have to get the component from the CopyEventArgs.CopiedObject, which will have the results of the copy operation.
The CopiedObject will be null in the Initiated event phase. Use the Processed phase instead of Initiated in the event subscription.
You've not called the VersionedItem.Save() method to save the metadata changes made on the copied component.
As Alvin mentioned the add-on configuration approach, here is an example code on how to read the add-on configuration in the event system.
When you extend TcmExtension you have a member property called 'AddonConfiguration' which you can use. Here is one example:
private IConfigurationSection GetExtensionConfiguration()