Cannot rearrange apps that are inside a folder

I have an iphone 12 Pro with iOS 16.2

When I try to rearrange apps, I can combine two or more into a new folder (group of apps) but once done, none of these apps can be rearrange INSIDE the folder and also none of them can be MOVE OUT of the folder as an isolated app in any of the screens.

I tried (without solving the problem):

1) Check Zoom option is disable (it is, it was never activated)

2) Restart iPhon

3) Reset Home Screen

4) Reset All Settings (this action removed all my folders (which was not an optimal action but worth if I could have solved the issue), but behaviour remains the same.