Answered
png files get distorted after drag n drop

Illustrator 22.1
Mac 10.13.3

Illustrator 22.1
Mac 10.13.3
That's not distorted, but rather discolored.
Looks like Illustrator has trouble interpreting this specific PNG. The PNG definition allows a gazillion of options and some applications can only interpret half of them.
Try an open in Photoshop and then save from there. Probably as a different file format.
ALso you can try if it's a GPU issue: try View > Preview on CPU.
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