When tapping to drag the floating menu, the icon immediately drops down, roughly below outside the finger surface.

This means of you are trying to place the icon on a specific spot you need to drag higher than needed and can't 'just' move by a pc or two.

For interest, I use the dev poppers 'show screen touches' so it's quite obvious how far out moves!

Happy to assist with a video. Samsung s20, international, nothing particularly changes from default.