Right, that's a good easy filter. I think the combination of that symptom and the original "view on board" problem strongly suggests a broken index.
Could you try reindexing the App2 project? Then repeat both the drag test and the view on board test?
I tried reindexing the project. Then tried moving the issue again. It still did not work for the bad issue, but I tried creating another bad one and I could not. Yesterday I could. So, the reindexing may have fixed this going forward. I will need to track this. Thank you.
Also, yesterday I was searching open JIRA issues and found "JSW-13530:Backlog doesn't display issues on sprint accurately. Issues moved on backlog view revert back after refresh". This could be the problem, though not sure if the "Sprint" field has anything to do with it.
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