16.04 LTS on Virtualbox - Drag/Drop from PC to Ubuntu Not Working

Setup: Win10 on Dell 8900 Virtualbox - Latest version Virtualbox Extensions - Latest version Ubuntu 16.04 LTS - All updates installed Bidirectional Drag/Drop Enabled

I can drag files from Ubuntu to PC without a problem. When I drag from PC to Ubuntu it looks like it is working fine. I get '+ Copy' symbol and I get busy symbol (blue circle) for a second but nothing appears in directory. I've tried Downloads, Documents and Desktop directory as well as others.

The bidirectional clipboard works perfectly.

Any ideas why it doesn't work?

I figured out it sort of works. The file is transferred to /tmp/VirtualBox Dropped Files/'time stamped dir'/'file'. It doesn't put it in dropped folder. You can manually move it. /tmp/VirtualBox Dropped Files is deleted on reboot.