Drag and drop nodes from the pallet not working

Question

I can drag and drop elements within an existing diagram that I have created, but not from the pallet. I have never had this problem before. I just updated my version of yEd from 3.24 to 3.25 and the problem remained.
I just noticed that alt+mouse, or shift+mouse, will move nodes from the pallete

Answer 1

Dragging nodes from yEd's palette into its editor area still works on our yEd 3.25 test machines.

From your description it seems to me that your yEd is in a very strange state indeed. You can try to reset its state by deleting your profile directory (see "Help" -> "About" for the profile directory location).
If you do have a lot of custom settings or user-defined palette sections, you might want to backup your profile directory to a different location first.