I experienced an issue with a client’s computer. He lost the ability to drag and drop emails into folders in Outlook 2016, running Windows 10. This only occurs after the Windows 10 Anniversary update has been installed.
I tried to uninstall the Anniversary update, unfortunately this was not possible as 10 days after already passed. If you want to try this type recovery into the start menu.
I discovered this to be an authentication issue. Once the outlook password prompt appears and you enter the password the issue occurs. If you are able to close Outlook and re-open it without the auth box appearing the issue disappears.
THE WORKAROUND for me was to click save on the password box. Once the credential was saved the password box did not appear and the issue disappeared. This works for Outlook 2013 / 2016.
Apparently Microsoft are working on a solution.
UPDATE Dec 2016 – MS have a solution. It has been fixed with a Windows Update released on Dec 13 2016 – KB3206632
(This is still the case – see the website mentions it was last updated in September. It is now the 17th of Oct and the issue hasn’t been fixed yet!)
I hope this helps everyone else with this issue. Please let me know by commenting if this has helped you.