The issue occurs under both xorg and wayland sessions.
Here is the journalctl output:
$ journalctl -b 1
Hint: You are currently not seeing messages from other users and the system.
Users in groups 'adm', 'systemd-journal' can see all messages.
Pass -q to turn off this notice.
-- Logs
Public bug reported:
Whenever I drag a file from a desktop and move it to the nautilus folder
window, the system freezes and I can't do anything, just moving the
mouse.
ProblemType: Bug
DistroRelease: Ubuntu 20.10
Package: nautilus 1:3.38.1-1ubuntu1
ProcVersionSignature: Ubuntu
