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Ok, status update: I found out that my scale was set to 125% in my system settings by default. That seems to be the culprit since after changing it to be 100%, dragged elements no longer become offset upwards no matter how far down the page you are from the top.

So I guess this doesn't really count as a bug since you have to change something in your system settings to a different variable in order for this to even happen.


Short version: It's because my window scale setting wasn't 100%.