Originally published at: Fix: Drag and Drop Not Working on Windows
The drag and drop functionality is used by almost everyone to move or copy files/folders using mouse to organize stuff on Windows. The same can be achieved by Right Clicking on a file/folder and then selecting Copy/Cut from the pop up context menu that appears in the destination folder but many users find it easy to do this…
I know this is quite old but figured I’d respond with my solution as well.
I actually did not find the registry key, at all, on a virtual Win7 build. The ESC key did not work either and I thought about terminating the explorer.exe task and restarting it; however, all I did was close all Explorer windows and launch explorer.exe and all subsequent Explorer windows worked again. Much easier than restarting and cleaner than terminating explorer.exe and restarting it.
Mine started after I ran SecureZip from a network drive and extracted to a local drive.
“Esc key button trick” worked! Thx!!
Thank you, the ‘Esc key button’’ worked 
Thank you for the info.
The key should actually be in HKEY_CLASSES_ROOTCLSID{679f85cb-0220-4080-b29b-5540cc05aab6}ShellFolder
Solution 1. “Esc key button trick” worked. Thank you.