Source Monitor drag not working after in/out points

Can’t drag marked clips from Source Monitor in Premiere Pro

Description:
Until recently, I could set a mark in and mark out in the Source Monitor and then drag the selected portion of the clip directly from the monitor into my timeline (either video, audio, or both). Since yesterday, I can still drag the full clip when no in/out points are set, but as soon as I mark in/out, I can no longer drag the clip from the monitor  nothing happens.

What still works:

• I can drag from the “Drag Video Only” and “Drag Audio Only” icons below the Source Monitor.

• I can insert/overwrite with , and . shortcuts.

• The issue only occurs when trying to drag video either as video only or audio only in the Source Monitor after setting in/out points.

Already tried:

• Resetting workspace

• Re-enabling “Drag Video Only / Audio Only” buttons

• Resetting preferences

• Confirmed track targeting (V1/A1) is enabled

• Tested with different clips and projects

System:

• Windows 11

• Premiere Pro version: v25.5

Expected behavior:
Dragging a marked segment from the Source Monitor to the timeline should still work, as it did before.

Possible cause:
Appears to be a recent bug/change in newer Premiere version