Just wanted to chip in as I just got it to work with iTunes 12.12.4.1 (newest version of of this writing) and on my iPhone 13 Pro (fully updated).
Neither drag-and-drop or right-click paste worked for me.
But Ctrl-V worked. Copy the .ipa file (normal Ctrl+C) from File Explorer, go to iTunes on the device's page, Paste with Ctrl+V and the app start to install.