1. Windows 10: 21h1 19043.1826
2. Fences 4. (as downloaded from this site on the 2/7/22 (dd/mm/yy) (uninstalled so don't have access to the full version numbers anymore)
3. Dragging files or folders from a zip to the desktop, though I recall it might have occurred on some document moves too.
4. Dragging to an empty desktop area, items would appear (mostly) in a fence that was not near the drop area. (other 3rd of the screen.
It's not something I'm too worried about now, though I really liked aspects of the product it came with some issues that stopped me from wanting to buy it.