Unity 3D Cannot drag prefabs from project folder to scene

Question

On Unity 5.3.4f1 when I try to drag any prefab (for example the standard asset FPSController prefab) from my Project folder onto the scene or Hierchay I get no response.

The prefab isn't placed and my cursor stays in pointer mode throughout.

This happens to me on all sample and new projects with and without an empty scene.

My Unity is on a MacBook Pro running El Capitan 10.11.3

Answer 1

This happened with me sometimes, one way to solve this is to create a empty prefab manually. In case you don't know how to do it

 GameObjects -> Create Prefab

Tell me if it helps.