Chrome Version:  65.0.3325.103/10323.45.0 beta-channel Daisy,Reks and Kip
OS: Chrome

What steps will reproduce the problem?
(1)Sign in to chrome -> Open App launcher
(2)Now drag any App into another App so that Folder is created
Ex: Drag 'Gmail','Google photos' into 'Docs' -> Folder is created
(3)Open Folder ->now try to remove 'Docs' from outside of that folder ->observe still 'Docs' remains in that folder even on dragging
(Please refer Video and Screenshot)

Expected: Dragged App should not be seen in Folder while trying to remove App from that Folder
Actual: Instead Dragged App remains in Folder even after App is dragged outside of the Folder

This is Non-Regression Issue seen from M-62

@omrilio: Please confirm the Issue

Note : Issue is also sen on M-63,M-64 and on latest M-66
 

Deleted: Actual_Folder.mp4 12.9 MB

	Actual_Folder.mp4 12.9 MB View Download

Deleted: Actual_Folder.jpg 255 KB

	Actual_Folder.jpg 255 KB View Download