To answer my own question it turned out I did not need to create the widget dynamically in the Drag Detected. I created a UMG widget that was just the thing I wanted to drag and drop. This widget has a exposed variable to hold the offest that will be used for the operation. Then I added that to the UMG canvas that would hold it for display as the HUD. Then I could bind a Mouse Down directly on the widget being dragged. I also added an override for the Drag Detected in that widget. The UMG HUD has the On Drop override. Your Default Drag Visual becomes self in the Drag and Drop Operation. I did use an extended Drag and Drop Operation with two variables. One is the widget reference and the other is the Vector2D offset. See the attached image bludprints.
Ultimately I should not have been creating the widget in the drag detected override and that is why it would fly in to where he mouse started the drag operation. What I wanted was to drag around a HUD element, widget, and then drop it in a new location. Very much like dragging a window around or a placing a pin on a map, etc.
Note: In the OnDragDetected I opted to not execute the remove from parent so it stays there until drop occurs. See the OnDrop override.
