fix: Virtualized Tree DnD fixes

packages/@react-stately/layout/src/ListLayout.ts

@@ -585,7 +585,7 @@ export class ListLayout<T, O extends ListLayoutOptions = ListLayoutOptions> exte
     let layoutInfo = this.getLayoutInfo(target.key)!;
     let rect: Rect;
     if (target.dropPosition === 'before') {
-      rect = new Rect(layoutInfo.rect.x, layoutInfo.rect.y - this.dropIndicatorThickness / 2, layoutInfo.rect.width, this.dropIndicatorThickness);
+      rect = new Rect(layoutInfo.rect.x, Math.max(0, layoutInfo.rect.y - this.dropIndicatorThickness / 2), layoutInfo.rect.width, this.dropIndicatorThickness);
     } else if (target.dropPosition === 'after') {
       // Render after last visible descendant of the drop target.
       let targetNode = this.collection.getItem(target.key);

packages/react-aria-components/src/DragAndDrop.tsx

@@ -75,7 +75,26 @@ export function useDndPersistedKeys(selectionManager: MultipleSelectionManager,
     dropTargetKey = dropState.target.key;
     if (dropState.target.dropPosition === 'after') {
       // Normalize to the "before" drop position since we only render those to the DOM.
-      dropTargetKey = dropState.collection.getKeyAfter(dropTargetKey) ?? dropTargetKey;
+      let nextKey = dropState.collection.getKeyAfter(dropTargetKey);
+      if (nextKey != null) {
+        let targetLevel = dropState.collection.getItem(dropTargetKey)?.level ?? 0;
+        // Skip over any rows that are descendants of the target (can't drop an item into itself)
+        while (nextKey) {
+          let node = dropState.collection.getItem(nextKey);
+          // eslint-disable-next-line max-depth
+          if (!node) {
+            break;
+          }
+          // Stop once we find a node at the same level or higher
+          // eslint-disable-next-line max-depth
+          if ((node.level ?? 0) <= targetLevel) {
+            break;
+          }
+          nextKey = dropState.collection.getKeyAfter(nextKey);
+        }
+      }
+
+      dropTargetKey = nextKey ?? dropTargetKey;
     }
   }