fixes #85188

src/vs/base/browser/ui/list/listView.ts

@@ -856,7 +856,11 @@ export class ListView<T> implements ISpliceable<T>, IDisposable {
 
 		if (feedback[0] === -1) { // entire list feedback
 			DOM.addClass(this.domNode, 'drop-target');
-			this.currentDragFeedbackDisposable = toDisposable(() => DOM.removeClass(this.domNode, 'drop-target'));
+			DOM.addClass(this.rowsContainer, 'drop-target');
+			this.currentDragFeedbackDisposable = toDisposable(() => {
+				DOM.removeClass(this.domNode, 'drop-target');
+				DOM.removeClass(this.rowsContainer, 'drop-target');
+			});
 		} else {
 			for (const index of feedback) {
 				const item = this.items[index]!;

src/vs/base/browser/ui/list/listWidget.ts

@@ -796,6 +796,7 @@ export class DefaultStyleController implements IStyleController {
 		if (styles.listDropBackground) {
 			content.push(`
 				.monaco-list${suffix}.drop-target,
+				.monaco-list${suffix} .monaco-list-rows.drop-target,
 				.monaco-list${suffix} .monaco-list-row.drop-target { background-color: ${styles.listDropBackground} !important; color: inherit !important; }
 			`);
 		}