This problem started recently and was working perfectly before.
When I open the start menu and I try to drag one of my shortcuts (on the right pane), it will dim all of the other icons and then the icon which I've selected to drag will disappear from under my cursor and disappears. All the icons remain dimmed and are no longer draggable… And the shortcut that I selected to drag is missing. It's almost as if the functionality for dragging and dropping icons gets stuck in the 'dim' state.
When I sign out and sign back in again, it's back to normal (the icon has not moved).
I can still use the 'dimmed' icons as normal… I can click to launch them as well as right click them to bring up the shortcut options… But I cannot drag them…
Edit:
Here's a video showing what happens:
https://youtu.be/lPJ00qahu5I
Best Answer
This looks like the latest NVidia drivers (375.57) issue. I had the same problem today and even reinstalled Windows 10. It was OK with 375.57 drivers, but after I've updated Windows to Anniversary, I couldn't anymore drag any shortcuts again. Now just reverted to 373.06 with complete uninstall (DDU) and Start Menu is working fine again without this dimming and hanging!