Drag and Drop doesn't work in KVM sessions
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Stardock Forums
When you try to drag/drop files to/from a KVM window:
Drag a file from the KVM'd machine: A "create link"/copy cursor appears, and when you "drop", it will do nothing.
Drag a file from the Local machine: A no-drop/not allowed cursor ( ⃠ ), "drop" yields nothing again.
In seamless mode, it works as advertised.