Hey no it's still open, but the workaround provided by @DTS Engineer worked for me.

@DTS Engineer, thanks for your reply. Yes this happens on the latest public release, built with Xcode 26.4 and tested on macOS 26.4. Will try with the suggested workaround and get back. Issue ID: FB22393059

Not exactly sure what you mean with proper relationship, could you elaborate here? Using [Asset] will prevent the .dragContainer modifier from working to my understanding, as it expects a transferable item type and likewise an array of the Item.ID that matches the item type for selection. https://developer.apple.com/documentation/swiftui/view/dragcontainer(for:in:selection:_:)

Not exactly sure what you mean with proper relationship, could you elaborate here? Using [Asset] will prevent the .dragContainer modifier from working to my understanding, as it expects a transferable item type and likewise an array of the Item.ID that matches the item type for selection.

Not exactly sure what you mean with proper relationship, could you elaborate here? Using [Asset] will prevent the .dragContainer modifier from working to my understanding, as it expects a transferable item type and likewise an array of the Item.ID that matches the item type for selection. https://developer.apple.com/documentation/swiftui/view/dragcontainer(for:in:selection:_:)

Not exactly sure what you mean with proper relationship, could you elaborate? Using [Asset] for selection will not work with .dragContainer modifier, as it requires passing in Array of ID's that match the Item type argument, to my understanding. https://developer.apple.com/documentation/swiftui/view/dragcontainer(for:in:selection:_:)