It is an annoying issue that drag and drop (especially drop) events DOES NOT WORK on chrome in Wayland.
I have found some relative issues: Drag and drop does not work in Wayland · Issue #156723 · microsoft/vscode · GitHub Chrome/Plasma 6/Wayland: No mouse input after drag and drop / AUR Issues, Discussion & PKGBUILD Requests / Arch Linux Forums
There is a flag option, Preferred Ozone platform, for selecting the platform backend used on Linux. The default option is X11, which does not have this issue.
But If you switch it into wayland, or your DE running in Wayland(such as KDE Plasma 6.0 or hyprland by default) and switch in into auto, this issue will be exposed.
You can use this argument
--ozone-platform-hint=wayland
to launch your chrome in wayland to test this issue.
There is one demo for you to test the issue: HTMLElement:drop 事件 - Web API 接口参考 | MDN
BUT, Firefox in Wayland is free of this issue. The annoying issue wastes my valuable time for about 2 hours. And It takes me 30 minutes to write this blog.
So the conclusion I made finally is to use firefox and fxxx chrome off.