No that is not a bug, it is the intended design.
The line is an indication/marker of where the icon will be present when dropped.
But maybe the marker could use some better design than just looking like
an artifact/glitch in the graphics.
** Changed in: unity (Ubuntu)
Importance: Undecided => Wishlist
** Changed in: unity (Ubuntu)
Status: New => Confirmed
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White line while rearranging launchers
https://bugs.launchpad.net/bugs/627541
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