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The Daniel Presedo trick did nothing for me --still can't pan around (spacebar) when a document is in windowed mode, and moved away 'un-nested' from Photoshop---on the same or different monitor.
closed/re-opened PS after unchecking/checking System Settings/VE/'Show window contents while dragging'---still, no change.
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@Jim33771086rp5d I think you're talking about a different issue. This fix is regards to being unable to move the Photoshop application itself around the screen, not about being able to pan around within the document.
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I also have this problem: Photoshop 24.7.4; windows 10/X64, V 22H2. So I also found that clicking on "show windows contents while dragging" in the performance screen solves the problem: to get to this in Windows 10 -I did this: Right Click on "This PC" icon. Go to "Properties", then (on larger half of ABOUT screen) go to "Advaned System Settings" and click on 'Settings' under the Performance Tab. Click on "Show windows contents while dragging"