I only see a dotted outline rounded rectangle using new MacBook Neo running Tahoe 26.3.2. The same disk image downloaded to MacBook Pro with Tahoe 26.4 shows the folder image and alias swoop arrow. I tested last month release of EazyDraw which has been fine - but on Neo there is no Applications Folder graphic. On the Neo I drag and drop to the dotted rectangle, the copy works fine. It is just the Applications folder image missing on Neo. Note: graphics image such as a png, not disk image.
The icon for the Applications folder is not part of the disk image. It’s generated by the Mac displaying the disk image. So this sees like a local problem; it may help to clear the icon cache.
Reset icon services, reboot. Then icon appears. This was a brand new Neo, with macOS updated. Whole thing only cosmetic as the drag and drop worked fine for all tests.
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