Drag and drop within Project window not working

Hi all,

As of yesterday I am suddenly having an issue with dragging and dropping items in the project window (I've attached a small video to illustrate this). For example, dragging a file to another folder doesn't work on all folders, only some. Dragging a file onto the new comp from selection icon doesn't work. Restarting or resetting the preferences has no effect.

It's not ciritial to my work at the moment but it is extremely annoying. Is anyone having similar issue? Any solutions out there?

Many thanks.

– AE23.6.0 running on Ventura 13.4 on a MacStudio M1 ultra with 128Gb of memory.