unable to rearrange app icons in dock; Monterrey, new iMac 24" M1

Go to preferences - track pad - uncheck force click and haptic feedback

fixed the issue for me

Click and drag the icon in the dock -- drag it quickly after clicking, before the pop up menu has a chance to appear.

I was having the same problem, and this made me realize I could move an icon if I didn't click as hard (without having to fully disable force touch)... force touch in the dock is new to me on a new MBP and Monterey. Thanks.

I've never experienced that but the following may relate to the problem. No Available Windows Problem & Soluti… - Apple Community

I can't replicate that on my 2020 MacBook Pro but it might be worth a try.

Finally realized that if I Click Hold and Drag straight up, I can rearrange the icons. I was click holding and trying to drag horizontally and just kept launching the apps. Hope that helps.

See if the problem still happens in Safe mode (hold the shift key down at startup). It can take much longer to safe boot (10 min) so be patient.

How to use safe mode on your Mac - Apple Support 

Safe mode forces the OS to clear certain caches and logs and do other miscellaneous housekeeping. It's non-destructive to user data so is safe to do. Very often certain weird software behavior is corrected by simply logging in this way as a troubleshooting method. When you're in safe boot, the machine will not be at its best performance, especially with graphics, but that's expected.

Does the problem persist while in Safe mode?

Exit safe mode by restarting your Mac normally and re-evaluate the issue again.

If the problem is still unresolved, please return here and post a reply and we’ll see what else we can come up with for help.

What an easy solution to an annoying problem! Thank you so much.

Sadly, I think you have to remove the icon from the dock and then move it to where you want it.

Responders: this only applies to the NEW Macbook Pros (2021), where the trackpad has a second-level click. So, no point in telling us that your older machines have no problems; we already know (and we're glad for you, if not a little jealous).

Outstanding....Great solution! Thank you!