4.2 Beta 4: No way to drag a folder to last position in Favorites if next to last has stuff in it

There is no way to drag a new folder down below the last folder in Favorites if the latter already has stuff in it. The drag will either be interpreted as leaving the new folder as a top-level folder or nesting it within the last folder. Even if you drag it up somewhere else first and then try to drag it down to the end, you can't. Here's the scenario:
I'm trying to put "Loren Wilkinson" down below "Rikk Watts" so that he's in the correct order alphabetically. I can't do it. I have to drag Watts up above Wilkinson as a workaround.
In other places in the list, Logos can distinguish my intent (whether I'm trying to nest within the folder above or move to a position in parallel with the adjacent folders) by the left/right position of my mouse when I let go. That should be possible in the last position in the list as well.