The project pane allows you to create your own sub folders and enables drag and drop to move files between the folders, but it has never worked properly since it was introduced
Firstly you have to have assume all the project rights to have a chance at making it work, which I agree with, but even if you don't have these rights, you are still allowed to drag and drop files except they don't actually move.
When you have assumed all the rights and try to drag and drop, sometime it works and sometime it doesn't. Sometimes it appears to have moved the files but when you re-open the project they are back where they were originally. Sometimes when trying to drag and drop, the folders do not open, so you can't drop the file.
The project pane also allows you to have the same file in multiple folders, which it should not allow, but when it happens, it then means the drag and drop will give the appearance of working but it does not.
In short the whole process does not work well.
Regards
Al