This is a common issue but none of the previous posts had the same thing, and none of the fixes worked. As the title said, I cant move the layers up and down the layer stack, and when I add a new player it isn't named "Layer" but rather "final" which is rather odd, might have something to do with it.
Okay figured it out! This wasn't gimp's fault at all! This was the fault of gimp not being able to detect the dropping of the layer, due to other application's interference. Invisible full screen applications tend to mess things like this up, like overlays or some services, common culprits include skype, overwolf (this was my case) and other similar programs which use invisible fullscreen windows to do their magic.