Three fingers drag n' drop not working since MacOS 26

I started facing the same issue after upgrading to Tahoe and it was very annoying since this is one of the most used features by me as well. I found one solution without the need of any change on any of the previous configurations I used to have. Note: None of the configurations recommended in this thread solved my issue.

The core issue seems more a behavior of the feature rather than a change in configurations, so I had to change a little bit how I am using it:

Once the mouse pointer is on top of the element you want to drag or highlight (window title bar, scrollbar, text, etc), place the three fingers on the trackpad (the one integrated in you Macbook or a separate one) and start the movement. Once the element is in the new position, simply take two of the three fingers off the trackpad and option A) keep moving the pointer to a new position with one finger (commonly your index finger) or option B) take your last finger off the trackpad as a separate action. This will end the drag-lock action.

Hope it works for you!