Currently, we provide functionality to reference an external Studio Project (and its content) from a 'host' Project.

Although Referenced Project content comes in as 'read-only', we provide 3 different possible operations:

1) Viewing the Pages/Assets of the Reference Project, in the Host Project.

2) Using Resources from the Referenced Project, in the Host Project.

3) Using Assets from the Referenced Project, in the Host Project.

The first 2 items work as expected. However, dragging-and-dropping an Asset from a Reference Project into a Host Project's Page does not function, and creates a XAML error.

See attached video.

There are however no issues if for example, using a Reference Project Asset from an Element Property in the Host Project.

Repro Steps:

1) Create, or open any Studio Project, and have a Page open.

2) Navigate to the Assets Panel, hover over the '/' Project Root Directory, click on the (+) icon that appears on its Row, and select 'Add Project Reference'.
This will invoke a Windows Explorer window.

3) Navigate to, and select any Studio Project containing image assets (I used the Alembic Sample from the InternalProjects repo).
The selected Project and its files will then appear in a 'References' directory within the Host Project.

4) Expand the Referenced Project's Assets folders within the Host Project, and identify any bitmap image asset.

5) Click-and-Drag the image from the Reference Project's Assets directories, into the Navigator or the Stage of the Host Project's open Page.

Observe how a XAML error is produced, and the image doesn't render as expected on-Stage.

Expected Results: Assets from Referenced Projects can be used in the Host Project in the same capacity that a Host's Project's own assets can be leveraged.