Cannot move a selection to another layer. "Send to current layer" is greyed out, what's going on?

What am I missing here? I select an object and then the target layer, but when I try to click "Send to current layer" through the right-click menu, I find that it is grayed out. When I drag the selection square from the layers panel and drop it on top of the intended destination layer, the object doesn't move to the target layer. Instead, the original layer simply rearranges to be directly on top of the target layer.

It was working before and I think I was doing it in the same way. Is it a bug or am I doing something wrong?