Please check if the handler isn't getting to an exception if you trace line by line once it hits the breakpoint. The WinForms framework catches DragDrop exceptions internally and you might not notice them if debugger isn't configured to stop in VS exceptions options. Otherwise our sample projects with DragDrop events seem to work correctly and we haven't modified them for the 7.0.1 release.

Regards,
Slavcho
Mindfusion

Since the Coloring of the Visio Shapes requires an update to the libraries used we are back to trying to resolve our drag and drop issue.

I prepared an adapted version of the testing code you sent us with the picture boxes we use instead of the nodelistbox.

I also replaced the Libraries with the Version that supports LineColor settings.

As you will see the problem still occurs and the exceptions appear to be quite generic.
(there are also some exceptions concerning character encodings, although those dont appear to affect the issue)

i put the Project here for you:
https://pixeldrain.com/u/Ly7SVR7U

We are not seeing exceptions, but DoDragDrop's allowedEffects = Move was rejecting Effects = Copy set internally by DiagramView. New build here sets Effects only for drag data recognized by the view -

https://mindfusion.eu/_beta/fcnet703.zip

Regards,
Slavcho
Mindfusion