Bidirectional drag'n drop is not working with VirtualBox and ubuntu 14.04
Solution 1:
"Drag and Drop" was introduced with the guest additions in Virtual Box 5.0. with some limitations:
At the moment drag and drop is implemented for Windows- and X-Windows-based systems, both, on host and guest side. As X-Windows sports different drag and drop protocols only the most used one, XDND, is supported for now.VirtualBox Manual
In addition to that only drag & drop of simple text, or files and directories of the file manager not running with administrative permissions is supported.
Preliminary experimental versions of Virtual Box "Drag'N'Drop" to a Linux guest only were introduced in version 4.2 .
Solution 2:
According to the Release notes: https://www.virtualbox.org/wiki/Changelog-4.2
"Added experimental support for Drag'n'drop from the host to Linux guests. Support for more guests and for guest-to-host is planned."
I did not see any newer release notes indicating that status had changed.
So, Drag 'n' Drop will only work 1 way. Try enabling only "host to guest". Also, because of this reason it may be more efficient to just use a shared folder and move files back and forth that way.
Solution 3:
Have you done
sudo apt-get install virtualbox-guest-dkms
to ensure that virtualbox doesn't break after kernel updates?