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Fixed in 2020.1.X
Prefab is placed incorrectly when dragging it from Project window to Hierarchy between an object and another one with a child
How to reproduce:
1. Open the attached 'project-1205276.zip' project
2. In the Hierarchy window expand 'Cube'
3. Drag the 'Cube' prefab from Project window to the Hierarchy window and release it between the 'Cube (1)' and 'Directional Light'
Expected result: Cube prefab is placed above 'Directional Light'
Actual result: Cube prefab is placed below 'Directional Light'
Reproducible with: 2017.4.35f1, 2018.4.15f1, 2019.2.17f1, 2019.3.0f4, 2020.1.0a17
A more descriptive title that wouldn't fit: Prefab is placed below an object instead of above it when dragging the prefab from the Project window to the Hierarchy window between the object and another one that has a child expanded
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Resolution Note (fix version 2020.1):
Fixed in 2020.1.0a21