Inner content snippet cannot be placed

Impacted versions: 17.0

Steps to reproduce:

• create a custom module according to the official documentation https://www.odoo.com/documentation/17.0/developer/howtos/website_themes/building_blocks.html

    <?xml version="1.0" encoding="utf-8"?>
    <odoo>
        <template id="s_custom_snippet" name="Custom snippet">
            <div class="s_custom_snippet" data-drop-in=".content, nav" data-selector="custom-snippet">
                Foo Bar
            </div>
        </template>
    </odoo>

<?xml version="1.0" encoding="utf-8"?>
<odoo>
    <template id="snippets" inherit_id="website.snippets" name="Custom">
        <xpath expr="//div[@id='snippet_content']/div[@class='o_panel_body']" position="inside">
            <t t-snippet="custom_web_blocks.s_custom_snippet" t-thumbnail="/website/static/src/img/snippets_thumbs/s_card.svg">
                <keywords>Custom</keywords>
            </t>
        </xpath>
    </template>
</odoo>

Current behavior:

Snippet cannot be dragged, is disabled and when inspected with devtools it has the title "No location to drop in" - even though data-drop-in is filled.

Wrapping the snippet into <section></section> works as expected

Expected behavior:
Snippet should be draggable into .conent and nav elements.