This is no longer true unfortunately.
The way replication works will always be the same, and no you don’t have a weird version of the Studio! That’s not a valid thing to say.
I think it’s my fault that I didn’t bring this up, not sure why I missed it. In order for the physics to replicate, the client has to have Network Ownership over the dragged part. Meaning whenever you drag a part, you need to do
part:SetNetworkOwner(player)
where player is LocalPlayer, else the position of the part will not change! It might also be wise to give back the Network Ownership to the server after we’re done dragging, which is done by setting the NetworkOwner to nil.
part:SetNetworkOwner(nil)
https://developer.roblox.com/en-us/articles/Network-Ownership