Cannot Move Obsidian Files Using Finder

Things I have tried

My notes are stored in iCloud under Obsidian/Notes. I checked that my notes folder and any subfolders have permissions set to allow ‘reading and writing’

I tried quitting Obsidian whilst trying to move the files in Finder

What I’m trying to do

I find moving large numbers of files into a newly created folder withing Obsidian is slow and cumbersome. I have to drag and drop one file at a time or use the right click menu with the mouse.

I can move the files far more easily by using drag and drop in the Finder

The problem is that the finder will not let me drop them into my choice of subfolder. I can click on the file or files and drag them but Finder will not let me drop them onto the chosen folder.

Can anyone suggest what might be stopping me here?

Thanks for any suggestions.