Sharing some feedback and some broader context.

I think it's said in other words elsewhere but the "picked" state needs to be clearer that it's picked up. What may be helpful is to actually add a drop shadow/scale/border and ideally there should be a hole where it was that makes it clear that you are holding it.

Not trying to diminish, but this pattern has other uses already. Anyone who builds accessibly for folks who use keyboard and no mouse.

Tab/arrows to highlight, Enter to select, Arrows to move, Enter to drop.