Hello,
Same issue for me, I can't drag and drop since last upgrade to 20.10.
For instance, drag file(s) from Desktop and drop to an open directory doesn't 
work.
...But drag file from Desktop and drop to an icon closed directory work.
 
Dell OptiPlex-7010
Description:    Ubuntu 20.10
Release:        20.10
Codename:       groovy

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Ubuntu.
https://bugs.launchpad.net/bugs/1898462

Title:
  [groovy] Drag and drop files from Desktop to Nautilus freezes gnome-
  shell

Status in gnome-shell-extension-desktop-icons package in Ubuntu:
  Triaged

Bug description:
  [groovy] Drag and drop files from Desktop to Nautilus freezes gnome-
  shell in Ubuntu 20.10 (beta).

  ProblemType: Bug
  DistroRelease: Ubuntu 20.10
  Package: gnome-shell 3.38.0-1ubuntu2
  ProcVersionSignature: Ubuntu 5.8.0-20.21-generic 5.8.10
  Uname: Linux 5.8.0-20-generic x86_64
  NonfreeKernelModules: nvidia_modeset nvidia
  ApportVersion: 2.20.11-0ubuntu48
  Architecture: amd64
  CasperMD5CheckResult: skip
  CurrentDesktop: ubuntu:GNOME
  Date: Sun Oct  4 12:19:26 2020
  DisplayManager: gdm3
  InstallationDate: Installed on 2020-10-03 (1 days ago)
  InstallationMedia: Ubuntu 20.10 "Groovy Gorilla" - Beta amd64 (20200930)
  RelatedPackageVersions: mutter-common 3.38.0-1ubuntu1
  SourcePackage: gnome-shell
  UpgradeStatus: No upgrade log present (probably fresh install)
  modified.conffile..etc.default.apport:
   # set this to 0 to disable apport, or to 1 to enable it
   # you can temporarily override this with
   # sudo service apport start force_start=1
   enabled=0
  mtime.conffile..etc.default.apport: 2020-10-03T01:41:41.633547

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