The behaviour is intermittent. At first it seems ok, but then the green 'drop' bar is so far to the left of the mouse that I can't drop the phrase where I want to.
Yes, I also have observed this. It happens, if you start dragging immediately after clicking at the phrase. It can be avoided, if you wait a second or so after the click before you start dragging the mouse.
Yes I subsequently found this workaround also. I think it's a bug though and the drop bar should always be in line with the mouse cursor. Hopefully it can be fixed with a patch update quite easily.