Can't drag & drop on desktop!

I just attempted to drag an old icon on my desktop to the trash bin.

Instead of going into the basket, it just moved to a different location

on the desktop. I can right-click and delete with no problem, however.

I created a second icon for a test, and it does the same thing.

Drag & drop works fine elsewhere... just NOT on the desktop!

Rebooting did not help. Anyone got a clue???

Thanks in advance,

Dave