Here is how you fix it:
While Outlook is your active window, hit “Esc” key. 🙂

Reference:
http://answers.microsoft.com/en-us/office/forum/office_2013_release-outlook/no-drag-and-drop-to-move-emails-to-folders/472597d0-91f3-44fa-bf0b-08eb5f2439f3

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