I still run into this bug all the time, and look forward to a fix.

In the meantime, here's how to recover without logging out:

1. Open a terminal window.
2. Run 'pkill nautilus'.
3. Run 'nautilus-desktop &'.

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https://bugs.launchpad.net/bugs/1704765

Title:
  can't drag file from desktop to folder window on Artful

Status in Nautilus:
  Confirmed
Status in nautilus package in Ubuntu:
  Triaged

Bug description:
  I'm running Ubuntu 17.10 (Artful).  If I create a text file on my
  desktop and then attempt to drag it into a Nautilus folder window, it
  fails: when I release the mouse cursor over the folder window nothing
  happens and the file is not moved.

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