The issue was initially reported for Files however they claim that the issue is with Mate.
Hi, @kalmer 
(Usual disclaimer: please note that I'm just another Forum user here. I'm NOT an "Ubuntu" Developer and/or "Ubuntu MATE" Developer and/or "MATE" Developer).
I see that the bug you've reported - "Drag and drop in "Mate" causing other applications hidden (#3027) · Issues · GNOME / Files · GitLab" - https://gitlab.gnome.org/GNOME/nautilus/-/issues/3027 - is for the "Files" application - https://wiki.gnome.org/Apps/Files - as you've mentioned in your post.
According to "README.md · main · GNOME / Files · GitLab" - https://gitlab.gnome.org/GNOME/nautilus/-/blob/main/README.md - the "Files" app is "(...) a file browser for GNOME, internally known by its historical name nautilus(...)".
As far as I know, the "MATE" DE (Desktop Environment) and (therefore) also the "Ubuntu MATE" Linux distribution don't use "Files" / "Nautilus". They use "Caja" instead. See, for instance:
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In the web site "MATE Desktop Environment" - https://mate-desktop.org/: "(...) Caja is the official file manager for the MATE desktop. It allows for browsing directories, as well as previewing files and launching applications associated with them. It is also responsible for handling the icons on the MATE desktop. It works on local and remote filesystems. Caja is a fork of Nautilus. (...)"
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"GitHub - mate-desktop/caja: Caja, the file manager for the MATE desktop" - https://github.com/mate-desktop/caja
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"Caja - File Manager | MATEwiki" - https://wiki.mate-desktop.org/mate-desktop/applications/caja/
I'm running "Ubuntu MATE 22.04.3 LTS" ("Jammy Jellyfish") and I see that the version of "Caja" that is installed is 1.26.0. If you find a bug/issue in "Caja", I suggest that you report it in "Issues · mate-desktop/caja · GitHub" - https://github.com/mate-desktop/caja/issues
I hope this helps
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