2013 – When you drag and drop a file into a document library, the error "A file with the name XXXX.oft already exists, it was last modified."

We have sharepoint 2013 on site and in a team site we have a document library on which version control is not enabled, as follows: –

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Now I have downloaded a file named n1.oft using the "upload" option. and the file has been added successfully. so I edited the n1.oft locally in my PC, and I drag and drop the updated file into the document library, where I received this message >>, then I clicked on "Replace", as follows: –

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I thought so the old file would be replaced by the moved file, but I got the following error: –

A file named n1.oft already exists. It was last modified

as following:-

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so I'm not sure why the "Replace" option when dragging and dropping an existing file does not work in our case.