Icons do not go where I place them

When I drag an icon into my fence it does not go where I drop it. The icon snaps quickly to the upper left corner of my screen. Any idea what is wrong?

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Does this occur with a specific file type? Are you dragging from another folder, or from a program (ex - from a web browser or zip program)? Do you have any rules applied to the fence? If you hover over an empty portion of the fence for a couple seconds, then drop, does it go into the fence properly?