Did this it didn't actually fix it because it wasn't that broken as I discovered now.
The issue seems to be the Desktop(on my Laptop).
When I try to move something from the Desktop to my Computer, then it doesn't work.
When I try to move something from a window (which doesn't go to the edge of the screen), then it doesn't work.
from a window (which goes to the edge of the screen), then it works fine.
from Desktop over a window(can be anything, even something like Windows Defender) which goes to the edge of the screen or is positioned on the edge of the screen, then it works fine.
So I use this as a workaround.
I am not sure if it is Fences that causes this issue because I use it on both my Computer and Laptop and everything works fine when dragging something from my Computer.
Thanks for your help anyways.