Launchers allow you to place an icon on the panel which can optionally have a drop down menu. Launchers can be created by dragging an icon from the application menu to an empty space on the panel. It appears that there is code in the launcher plugin which supports dragging to the drop down menus by hovering over the down arrow and then dropping the icon in the menu. However this does not work. As soon as I drag an icon over the down arrow the drag ends. This code uses deprecated Gtk+ functions. I have ported it to use the replacements, but it still doesn't seem to work.
Alistair Buxton referenced this bugreport in commit bfad53ae9f5abdcaf97e601210ff1a65a6e8104e launcher: Fix deprecated functions https://git.xfce.org/xfce/xfce4-panel/commit?id=bfad53ae9f5abdcaf97e601210ff1a65a6e8104e
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