If you had no trouble dragging and editing the colorwell code snippet, skip this. Otherwise…
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I was not able to drag the snippet after selecting the text and the cursor just selected different text. A net search turned up an answer for Xcode 4 which suggested just hesitating an instant before dragging. This worked. But when I released the mouse over the library (after getting visual feedback I had the right place)…
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No pop-up appeared. So I tried dragging multiple times (after having joyfully discovered the magical hesitation drag) believing multiple drags would somehow work the next time which of course it didn’t. Then I closed and re-opened Xcode thinking maybe that would help. Nope. Later I discovered that the end of my virgin snippet library now had multiple “My Code Snippet” copies which I couldn’t figure out how to delete yet. A net search told me to select the snippet heading in the library and press “delete.” The bad news is that this resulted in a spinning ball and a delay of 5 seconds before Xcode fatally crashed. The good news is that upon Xcode restarting, I deleted my remaining 4 snippets without further crashes. Further good news is that I discovered I can click on the snippet(s) and edit them in what appears to be the same pop-up editing window shown in the book illustration.