I recorded a video to also illustrate the issue, but it didn't record the icon during the drag operation, so you'll just have to trust that I was actually dragging a *.pdx.zip file to the browser. The drag target UI does respond to the mouse over event, but it doesn't seem to complete properly.
Windows 11 Home (latest)
Chrome 103.0.5060.114 (Official Build) (64-bit) (also latest)
Someone on Discord also mentioned drag & drop wasn't working for them on Windows using Edge. Clicking "Choose a file" works fine though.