Unable to move any view between panels or change orders of tabs & collapsible sections with --ozone-platform=wayland

[ipg0]

Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.95.3
• OS Version: Linux 6.11.9-arch1-1 x86_64 (running Wayland)

About info:

Version: 1.95.3 (& 1.96.0-insider)
Commit: f1a4fb101478ce6ec82fe9627c43efbf9e98c813
Date: 2024-11-13T14:50:04.152Z
Electron: 32.2.1
ElectronBuildId: 10427718
Chromium: 128.0.6613.186
Node.js: 20.18.0
V8: 12.8.374.38-electron.0
OS: Linux x64 6.11.9-arch1-1

Steps to Reproduce:

1. Open VS code with --ozone-platform=wayland
2. Try to drag & drop any view between panels or reorder tabs / collapsibles

The flag --ozone-platform=wayland is a fix for electron apps that allows them to run natively under Wayland (otherwise, running them as XWayland apps causes issues).

With this flag enabled, I am unable to rearrange UI views using drag & drop. Curiously, other drag & drop features (dragging selected text, moving files, reordering editor tabs) work perfectly fine. If I disable the flag, everything goes back to normal.

Here is a video demonstration of the bug on a freshly installed Insiders build (no extensions, default settings):
Note: there was a native confirmation dialog between dragging the file and it getting moved, that didn't get recorded - the file dragging functionality works fine.

https://www.loom.com/share/00a0185ed21f418c9313a11a98dafbca?sid=64d51a11-4ee6-4c6f-b139-f8728bf6ed01