2. Describe the bug
After upgrading to 2.5.1 drag reorder list code no longer works. After drag, items snap into odd locations, and onViewportBoxUpdate fires repeatedly
3. IMPORTANT: Provide a CodeSandbox reproduction of the bug
@InventingWithMonster 's Drag and Drop Sandbox forked and upgraded: https://codesandbox.io/s/framer-motion-2-drag-to-reorder-forked-251-yfywb
A drag handle example - https://codesandbox.io/s/framer-motion-2-drag-to-reorder-251-614er?file=/src/App.js
Both of these work in older versions of Framer Motion 2.
4. Steps to reproduce
Steps to reproduce the behavior:

I made a gif to show what's happening.
Just ran into this as well. It looks like any state updates that occur at the end of drag when the layout prop is used causes it to get stuck. I made a small repro here.
Thanks for the report guys - this is fixed in 2.5.2.
I've also realised these lines are a remnant from development:
// Animate the component back to 0 when dragging ends
dragConstraints={{ top: 0, bottom: 0 }}
// But allow full movement outside those constraints
dragElastic={1}
As it's a layout animation-enabled layer it will animate back to its new layout naturally.
Update the original sandbox to reflect the above
Thanks @mattgperry ! For others, I found this link on twitter of a working example with v2
https://codesandbox.io/s/framer-motion-2-drag-to-reorder-fc4rt
This might already be known, but looks like something from 2.7.9rc to 2.8.0rc is breaking that demo:

@souporserious Thanks very much for the heads up!
Most helpful comment
Thanks for the report guys - this is fixed in
2.5.2.I've also realised these lines are a remnant from development:
As it's a layout animation-enabled layer it will animate back to its new layout naturally.