Playlist Drag and Drop does not work on Firefox

Dragging and dropping to reorder a playlist does work in Firefox.

However, you can only reorder a ‘dumb’ playlist.

If you have a ‘smart’ playlist, it will continue to use the ordering which was used when it was created.
A ‘smart’ playlist is created from filter criteria and will update itself dynamically. It is signified by a small ‘cog wheel’ icon on top of its thumbnail.

see [HowTo] Create Playlists (Updated for new UI)