Hi Sheldon,
Unfortunately this is not possible as this icon is coming from the framework itself. .Net Framework's DragDrop events are changing the cursor to "no" when you are unable to drop and currently there's no way to be changed.
We are really sorry for the caused inconvenience. Feel free to contact us in case you have any problems or concerns.
Regards,
Rosen Vladimirov
Telerik
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