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OK, I'm new to Mac/OSX so to me a reinstall sounds pretty drastic. Will read up about it. Haven't tried on a different user account yet. And not sure if file sharing is on or off. Will also look into that. Thanks for the help!

Restarting doesn't make a difference. Don't feel like reinstalling, so will just use command line workaround for now.

I have the same issue: I can create and delete folders and I can copy files and folders, but I cannot move them. Tried drag and drop but won't budge, like OP. Very annoying. Don't feel like reinstalling to see if that would solve the problem. I come from Linux, so comfortable with the command...