When dragging tracks into a playlist that's currently sorted by track order, the track should be added to the list at the point where the cursor is released instead of always appended to the end (for example, the same way Spotify, Apple Music, Tidal, and other playlist software works)
Each song in a playlist has an "order number" and will always be added to the end so as not to disrupt the existing order. If you want to re-number it, or place it elsewhere, you'll have to manually drag it up after it's in-place. Sorry!
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It would be very dope if a keyshifter (shift + drag& drop) could be used to get the OP's behaviour combined with a hover over playlist to open.