Thanks.
I’ve implemented a rectangle
Rectangle rect = new Rectangle((int)(prevPosition.X - 2f), (int)(prevPosition.Y - 2f), 4, 4);
When the current mouse position is not within the rectangle then it starts drag mode. Also set a state variable “isHeld”. When left button released “isHeld” is checked to see if this is a drop else it is a click.
Everything works as it should.
Thanks.