Can't drag emails to the file system or between folders in Outlook after installing Windows 10 Anniversary update

Symptoms

After you install the Windows 10 Anniversary update, you cannot drag emails to the file system or between folders in Microsoft Outlook.

The issue affects all supported versions of Outlook 2010, 2013, and 2016. Other email clients might be affected too.

Resolution

To resolve this issue, install the December 9, 2016, cumulative update (KB3201845) or any later cumulative update for Windows 10.