Since Outlook 365 was updated I can't drag my email to create a calendar event.

Seriously?!!! Between losing this email drag ability and the Read Aloud feature I really think you all fell asleep at the wheel on these updates. Please get these features added back ASAP. It's clear users rely on them and it's make our work day that much longer without them. So Facebook-like with the random unhelpful software updates here. WTH, Microsoft?!!!

Would strongly suggest people here upvoted and commented on the MS Feedback Portal.

Link below to the most relevant one I could find:
Drag email into Calendar · Community (microsoft.com)

MS have set the status of this to "open" so just need more people to create traction. :)

Have you figured out how to make it an appointment vs a meeting invite that includes the sender + other recipients? I have a quick step set up where I can turn an email into an appointment so it just shows up on my calendar but it with the new Outlook it seems like now I can only create a meeting and would need to remember to remove all other attendees.

+1 to this.

Also, as of today, Outlook doesn't even pop up the meeting invite. It's just creating the meeting for right now and sending it to everyone who was on the email. It took me looking like an idiot spamming a bunch of people to figure that out and now I don't want to touch that feature ever again.

I have found a new process that replicates the "drag and drop email to calendar". Right click on an email and select "quick steps" and then "Create New". Create a quick step to "Send Email to Appointment". Once this is done you can right click any email and after selecting the appropriate quick step it will create a new appointment.

Of course, I don't know if this works in the new email, but I will give it a try.