Chrome's URL field prohibits some URLs from being drag-drop'ed into Finder for auto .webloc file generation. Why is this?
So after some trial and error, I could find out a working method, but not the problem.
Click the address bar once. Even if the site is https, it won't show on the protocol on the first click and the rest of the URL will get selected.
Drag and drop the selected part of the URL.
If you click again and the site shows
https://etc., drag and drop of that URL wouldn't work.