Disable your Stopwatch and you can move your Player1 sprite just fine.
Do not press Start, just disable the Clock and your app 'works'
If the Clock is running, the app crashes after a few seconds of running the counter and the Player1 cannot move.
Using Drag is nice but for what it is worth you might create a 'joystick' ... this code moves the Player1 a lot smoother ...
Good luck. Perhaps this information will help you fix your app. 