For the drag ad drop in the Layers panel: drag the group object (or single object) over the label (name) of the target object in the panel.
There are two types of indicators that may show while dragging the object over another:
placing before or after the object is shown with a narrow blue line between two objects (in the panel).
placing inside the object is shown with a wide blue highlight over the target object.
The state of the preview button is kept as follows:
shape effects each keep a common state for all shape effect types.
image effects each keep a common state for all image effect types.
individual color effects keep a separate state (this may be a problem).
I added to the bug list to have a common state for Color Effects (first section of the Effect menu).
Will also reconsider the default state (to be on).
Dooh!! I wish I would have figured that out sooner on my own without having to bother.
Thanks for the tip. I will try harder next time to find my own answers first.
I think I figured out what I was doing wrong; I was using the tool on a layer that was highlighted, while a different layer was selected. The layers had objects that overlapped, and I thought the tool wasn't working. In short: User error .
The 24 pt size should show as 0.33 inch (maybe the field is small and the 0. is not visible).
Will add a separate unit option for font sizes as this is a problem.