This is somewhat urgent as this very strange behavior is keeping me from being able to complete this mix I'm working on. 

Normally, if you have two clips overlapping, if you drag the second clip (the one later in time) it will just move separately from the first clip. However, what's happening now is that the segment in the first clip that is overlapping with the second is getting cut off from that clip and moving with the second clip that I'm dragging. What the heck is going on? 

Can someone please confirm this is happening to them as well? Just take an audio clip, copy it, and paste near the end of itself, but make sure it's overlapping at some point. Then drag that second clip and try to move it to the right. You should see that the overlapping portion is getting cut from the end and going with the second clip. 

Now, please help me figure out how to fix this. If it's just some weird option in the preferences that was suddenly switched on as a default then I'll be really happy as I can quickly change that. Hopefully it's not some bug I have to wait to be fixed by the bakers. :(

UPDATE: I figured out a workaround. As long as you paste the second clip in a place where it's not overlapping, and then drag the second clip so that it's overlapping with the first one, you can freely move the second clip without it taking that segment with it. However, I'd still like to figure out why this behavior suddenly started. At least for now I think I can finish this piece I'm working on. 

Hi. Maybe check your settings in Preferences (P), check Advanced at the bottom, Customization, Editing.
 
All the best.

Zargg71
Hi. Maybe check your settings in Preferences (P), check Advanced at the bottom, Customization, Editing.
 
All the best.

Thanks for the tip, but it was already set to Blend Old and New. Just in case, I tried each of the other options and I'm still experiencing the same behavior. Were you able to reproduce what I'm experiencing by any chance?

I am not able to reproduce your issue. It behaves as expected on my end.
All the best.
Edit: This is on my laptop.

Are the clips in separate lanes? Same-lane clip overlaps are not supposed to be allowed but can occur in come cases and might explain the behavior in the one project. If that's the case, you may need to manually create a new lane for the overlapping clip and move it there or move it to an existing lane that doesn't have anything in that time range.