The dark grey square looks like a small window with a shadow. So I think
this might be some application or extension listening for drag-and-drop.
Please logout and retest without any other apps running.
Please also check to see what extensions are installed:
gnome-extensions list
that might be causing the issue.
** Package changed: xorg (Ubuntu) => ubuntu
** Changed in: ubuntu
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/2013320
Title:
Gnome terminal drag bug
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