Since update to Oreo, desktop folders no longer work.

While running my Pixel C with Android Nougat, long- pressing an app icon on the desktop and then dragging it over another icon created a folder containing both apps. The resultant folder could be custom-,named. Once the folder was created, additional apps (and/or internet shortcuts) could be dragged into the same folder. As it came from the factory, preloaded folders contained as many as five apps.

With Google "upgrade" if my Android OS to Oreo, this operation no longer works. Pressing and holding an icon shrinks the home screen to display the widgets tool, etc. Dragging an icon over another simply causes the lower icon to move around, dodging the one you are dragging until you lift your finger. No folder is created.