Drag-and-drop audio between tracks just creates a track at the bottom of track list

I’m aware Cubase has long ago taken away the functionality to drag-and-drop an audio file between tracks in the Arranger section (I don’t care about that) but supposedly we should still be able to drop audio between tracks in the Track List to create a new track. For me it just creates a track at the bottom of the Track List. It’s been this way for a few versions at least.

Surely this is not intended because I can see the green line in between tracks before I drop.

Cubase 15, macOS Sequoia, MBP M1 Max