Different component relocation problem

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Not sure if I'm missing something, but in the attached fairly simple file I cannot relocate anything. Try creating two new empty components, and dragging to relocate one into the other, it just can't be done. The timeline appears to not be dragged to an earlier position, so I don't think that's it.
I would greatly appreciate any insight!
Jesse
EDIT: I now attached my original model striped down to just one empty component, and its existence prevents moving anything else around in the browser tree, such as creating an additional empty component and trying to move one into the other. Once that original empty component (which used to contain stuff) is deleted though, then new empty components can be moved inside each other. So definitely seems like a bug, but I don't know how my model aquired this problem to begin with.
EDIT 2: Well I found my file can be "fixed" by discontinuing capture of timeline history then reinstituting it, which causes the timeline history up until that point to be lost, but at least the file seems fixed to where components can be restructured again as subcomponents, etc. 🙂