Drag and Drop not working Office 365 - Word

I had the same issue in Office 365. It affected drag and drop text in Word and affected dragging email addresses in Outlook among other instances. 

In Word, I went to the Options>Advanced>Editing Options and the "Allow text to be dragged and dropped" option was active. On a hunch, a deactivated it, and reactivated it and it solved the problem.

I have had the same problem on and off for months. It affects all my Office programs.  I have read all these discussions and the answers from so-called experts but nothing worked until this morning. I came across this article... https://www.networkworld.com/article/2845143/software/when-outlook-drag-and-drop-stops-working.html  

Just hit Escape... no changing settings, no restarting, no repairing Office... just hit Escape a few times and -- wonder of wonders -- it works.

yes... it turns out you cannot drag and drop with the cross-reference dialog box open. this decreases productivity...

Check for open dialogue boxes - particularly <Insert cross-reference> or <Find & Replace>

For me, it is always the open cross-referencing box (particularly as it opens on my primary screen when I am working on my secondary screen)

Installing all Microsoft updates and "restart," solved my drag text issue on Word 2016 (which was not previously resolved even though that the "allow drag and drop" option in the Option -> Advance -> editing option was checked).