How to reproduce:
1. Create new project
2. Create any 3D object in Scene
3. Make it a prefab, by dragging from Hierarchy to Project tab
4. Drag prefab from Project tab across the Scene

Expected result: Prefab is following the position of mouse in the Scene
Actual result: Prefab is glitching back and forth between current mouse position and edge of the Scene (or previous mouse position if left not moving for a few seconds)

Reproduced with: 2022.1.0a10 (MacOS 11.6 and Ubuntu 20.04)
Does not reproduce with: 2022.1.0a9, 2021.2.0b15

Note: Does not reproduce with Windows 10