Hi,
It looks like this is a bug, since the same thing happened on my end the first time I dragged the folder. I tried again after relaunching Edge, and the issue persisted. I also tested it by creating a new workspace, but the same problem still occurs. In this case, I suggest reporting this issue to the developers by pressing Alt+Shift+I. Make sure to include the logs, as they can help the team diagnose the problem more effectively and work on a fix.In the meantime, you can install Edge Beta if you need to rearrange folders. I tested it, and the issue doesn’t seem to occur there.