We just upgraded from Kendo 2016.2 to 2017.2.621 and it's seems like we can't use the setStatusClass from the drag event anymore. The documentation says that the naming convention has changed starting with version 2016.3.914 but I've tried every pattern possible involving the k and the i without success. None of the provided value used enabled the k-denied icon. Also, calling setStatusClass with k-denied use todo the same job as calling a e.setValid(false); on the drop event... this ain't working anymore.
Here's a snippet that reproduce the problem.