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I've created the group (File-->New Group). Tried creating it in the iCloud section of the sidebar and "On my Mac". Same behaviour.
I select a contact in my "all contacts" highlight and drag over to the group in sidebar that I want to add it to, BUT it bounces right back and will not add to the group!!!
MacBook Pro 13″, macOS 11.7
Hold down option key while opening Contacts and test.
Contacts- Can't add a contact to a group
