UE5 Layers panel bugged - Can't right click or drag items to create new layer

Ok, just as I was writing this post, I think I found the solution. I’ve switched to Data Layers (Windows>World Partition>Data Layers Outliner), and so far it seems to function exactly like Layers did in older UE5 versions/tutorials.

Just leaving this out in case someone else stumbles upon this issue.

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