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I don't normally use drag and drop, but I tested this after seeing the post and response, and drag and drop worked for me in 8.5.3 under Windows 7 64 bit with a Word document dragged from my desktop.
We're locked down very tightly in terms of permissions, so I was a little surprised that it did work.
Do you use DAOS? I wonder if there are any settings there (although maybe that wouldn't kick in until you tried to save)
Feedback response number WEBB9ZJQK8 created by ~Lily Minkitexflar on 08/19/2015