Thank you for reporting a bug to Unity.
Our investigation indicates the issue originates from a third-party asset, plugin, or service, rather than Unity itself. Because the problem lies outside our codebase, we're unable to address it directly. Please see these posts for more information:
https://discussions.unity.com/t/hierarchy-is-completely-broken/1713649
https://discussions.unity.com/t/cant-drag-and-drop-anything-in-the-hierarchy-in-unity-6-4
We will close this case as a third-party issue. We recommend contacting the vendor or maintainer for support. If you have evidence that the issue is within Unity, please share it and we will re-open the investigation.