If text is dropped and the drop target is an app, then it's possible that the file created by the app will be saved in the directory of DragText. Not in the directory of the source of the text or, for example, in the desktop directory (i.e. the homre of the WPS).
Not supporting files in the the DragText directory is not a perfect option, and using <WP_DESKTOP> if the path of the output file would be DragText's may surprise an user.
Are there other options to exclude DragText input, or to avoid the use of the DragText directory? The dropped DragText file has got rather specific EAs. If the dropped file is located in DragText's directory, and the EAs may be DragText's, then use the <WP_DESKTOP>?
Rexx sample code won't be a surprise. Save, and use DragText to drop text of e.g. a CMD.EXE window on top of the icon of the sample:
/* Drop text */
PARSE ARG filename
data=CharIn(filename,1,Stream(filename,'C','QUERY SIZE'))
CALL CharOut filename
output=Reverse(filename)
IF Pos('.',output,1)>0 THEN PARSE VAR output . '.' output
output=Reverse('4PM.'||output)
CALL CharOut output,data
CALL CharOut output
SAY 'Input:' filename
SAY 'Output:' output
CALL CharOut '','Press <ENTER> to delete the output file... '
PULL .
'@DEL' output '> NUL'
EXIT