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This video demonstrates a crash (About info displayed):
This looks like a recurrence of a problem that was last reported to this Community back in March.
See my post from that thread here:
Since then, Adobe Photoshop Elements 2021 has had another update, so my advice now would be to make sure you've updated to version 2021.2 by firing up the Editor and going to Help > Updates...
Hope that helps 🙂
Ah... darn it... I should have recognized your username from your earlier post re. the Mac App Store & updates. Sorry 😞
For now, try my suggested copy & paste workaround instead of dragging & dropping. Hopefully, a future Mac App Store build update will fix this problem.
Again, apologies for not recognizing your distinctive username & avatar 🙂