Same issue on my Ubuntu 17.10 beta, freshly installed (no upgrade).

Just for completeness, this behaviour happens by just dragging a file
from desktop to any other window of nautilus (no shift key necessary).

Dragging from nautilus to desktop works.
Dragging from nautilus to another nautilus windows works.
Cut/Paste from/to desktop works.

It's the dragging action from desktop that looks flawed.

If useful, here is a screen recording that shows the issue (well, the
initial mouse drag and subsequent click attempts are not clearly visible
but I think that one can get the idea of the problem):

https://www.dropbox.com/s/kjzqucqb7hdcnvy/Screencast_drag_issue_ubuntu-17-10-beta.mp4?dl=0

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https://bugs.launchpad.net/bugs/1716277

Title:
  Moving a file to another folder, holding shift key,  blocks  mouse
  pointer

Status in nautilus package in Ubuntu:
  Confirmed

Bug description:
  When I try to move a file that's on the Desktop to another folder
  holding the shift after having clicked on it and started dragging it
  to the destination folder, the mouse pointer from an arrow becomes a
  hand and after this you are unable to click on other files or folders,
  even in Firefox you are unable to open another tab by clicking on the
  plus near the other tabs.

  To reproduce the bug:

  Open Files.
  Click on a file on the Desktop.
  Start dragging it to another folder in Files and while dragging press the 
shift key.
  The mouse arrow becomes a hand.
  Try to click on another file, you won't be able to.
  Open Firefox and try to open another tab, you won't be able to.

  ProblemType: Bug
  DistroRelease: Ubuntu 17.10
  Package: nautilus 1:3.25.92-0ubuntu1
  ProcVersionSignature: Ubuntu 4.12.0-13.14-generic 4.12.10
  Uname: Linux 4.12.0-13-generic x86_64
  ApportVersion: 2.20.7-0ubuntu1
  Architecture: amd64
  CurrentDesktop: ubuntu:GNOME
  Date: Sun Sep 10 21:56:09 2017
  ExecutablePath: /usr/bin/nautilus-desktop
  GsettingsChanges:
   b'org.gnome.nautilus.preferences' b'default-folder-viewer' b"'list-view'"
   b'org.gnome.nautilus.window-state' b'sidebar-width' b'343'
   b'org.gnome.nautilus.window-state' b'geometry' b"'1394x615+36+32'"
   b'org.gnome.nautilus.list-view' b'use-tree-view' b'true'
   b'org.gnome.nautilus.list-view' b'default-column-order' b"['name', 'size', 
'type', 'owner', 'group', 'permissions', 'mime_type', 'where', 'date_modified', 
'date_modified_with_time', 'date_accessed', 'recency']"
  InstallationDate: Installed on 2017-06-01 (101 days ago)
  InstallationMedia: Ubuntu 17.10 "Artful Aardvark" - Alpha amd64 (20170525)
  SourcePackage: nautilus
  UpgradeStatus: No upgrade log present (probably fresh install)
  usr_lib_nautilus: dropbox 2015.10.28

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