Unable to drag and drop PSD or ABR files into Photoshop to open

I used to be able to open PSD files, brushes and images by dragging and dropping files from File Explorer into Photoshop. I'm using v25.4.0 on Win11 23H2.

Now, nothing happens when I drag and drop it. I suspect a Windows update may have broken it, but I'm not 100% sure.

This is not the crossed-out circle issue caused by running Photoshop as Admin. That option is turned off.

I've tried resetting Photoshop settings, but no joy.

I'm wondering if anyone else has run into something similar and has a fix. I'm hoping it's a preference setting somewhere I accidentally turned on.