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Both vertically and horizontally work fine here. When I place three fingers diagonally thats when things start to get funky.
 
my tb13" working fine, no dead zones, any finger orientation works fine...
 
I've went to test this again in several stores and again all 2016 MBPs have this problem. I tested several 15" and 13" ones with and without touchbar.

I will not replace my device and hope there will be a firmware upgrade some time.
 
Update 10.12.2 did not fix the 3 finger drag problem for me sadly.
 
I'm going to bring this back up to the top as well. Mine is definitely sporadic at best and was wondering if anyone knows of a fix yet for this?
Thanks!
 
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