Drag and Drop suddenly stopped working

I've been using winSCP for many years. Suddenly the Drag and Drop feature stopped working. I did not change any of the settings and it had worked just fine the previous day. It now gives the error

WinSCP was not able to detect folder, where the dragged file(s) was dropped. Either you have not dropped the file(s) to regular folder (e.g. Windows Explorer) or WinSCP shell drag extension is not installed or you have not restarted the computer yet after installation. Install the extension or switch to compatible drag&drop mode (from Preferences window), which uses temporary folder for downloads. It allows you to drop files to any destination.

I updated to the 5.1.4 version, this didn't help.

I'm running Windows 7, though again it was working just fine on this system the previous day.

The Drag and Drop preference is set to Use Shell Extension.

Session Protocol: SSH-2
SSH Implementation: OpenSSH_4 3
Encryption algorithm: aes
Compression: no
File transfer protocol: SFTP-3

I have no idea why it stopped working or what I can do to get it working again.
Any help would be appreciated.

Did you try to restart your machine?

Yes, I have restarted the machine several times to no avail.

Go to registry and export following keys and attach the export here.
(It's possible that the latter does not exist)

The first one is
The second does not seem to exist.

Thanks.

Please add LogFile as follows:
Restart your machine. Try to drag&drop with WinSCP. And attach or email me the log.

Thanks.

On my system (Win8) the drag & drop stopped working when I used admin rights for the program.

mstra001 wrote:

On my system (Win8) the drag & drop stopped working when I used admin rights for the program.

But that's with any application running as administrator (try it with Microsoft Word for instance). Seems to be prevented by Windows/Windows Explorer.

I had this happen today and it turned out my Esc key on the keyboard was stuck.