In Windows XP, you could arrange drag and drop to arrange files in windows explorer, Like so:
I have not been able to do this in windows 7, 8, or 10 (Current). Is there any way to do this?
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This is not possible since Windows 7. Here Microsoft needed to re-write the Explorer control to support the library feature. And here Microsoft decided that the feature was not used by a lot of users and so they have not re-implemented it.
Windows 7 includes a brand new view control for items in the Explorer. Given time constraints, certain functionality that was deemed lower priority wasn't able to be implemented in the new control.
So send feedback to Microsoft via the Feedback Hub app and hope you get enough votes that Microsoft implements it in a newer Windows 10 Feature Update.