I have the exact same issues. Upgraded from 16.10 to 17.04 and then immediately 
to 17.10. Everything works fine, except this drag and drop behavior. It is 
limiting to my productivity as I tend to use the desktop a lot.
I would just like to add that when moving files from a nautilus window onto the 
desktop, if you press Shift, the files do get moved and not copied.

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https://bugs.launchpad.net/bugs/1727057

Title:
  Drag and Drop Malfunction

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