Thankyou for sticking with it. I believed I have solved the issue, but I cannot update the game on itch at the moment.
Its a flaw with my input helper lua module. Once the hold test is activated, it still updates the position. This means if the mouse position has left the test zone by the hold time is triggered, the drag initiation test fails.
This was legacy code to handle drags before I realised needed to have a different approach to handle a touch interface.
So at the moment, you need to leave the mouse over the item until it flashes.
This issue was a bit of code blindness for me. I know exactly how everything works, so my muscle memory automatically compensates for the quirk. It can be a bit challenging to playtest at times as the developer.
I’ve updated the wavedash version. Whenever you get a chance, it would be great if you could check whether the fix works for you.