Changing status to confirmed, since upstream has had this bug since 2003, and a patch too, but the patch hasn't yet been committed.
** Changed in: control-center gnome-control-center (Ubuntu)
Status: Unconfirmed => Confirmed
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Nautilus stops responding on copy-drag if 'Locate pointer' mouse feature is
enabled
https://launchpad.net/malone/bugs/9441
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