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I see exactly the same as your video.
I'm curious though, why would you be dropping an appearance into its own folder?
Sometimes I try and double click on the appearance to change the model appearance. For some reason it ends up dragging it instead of double-clicking. I don't seem to have this problem elsewhere, so I don't know if maybe it's just really sensitive (whereas they desensitize double clicking in, say, windows explorer)? I'm not sure, but I guess I'm just a little sloppy with my clicking.