First of all, thanks for the continued help! I'm starting with the item in storage, but when I left click the name of the item it leaves storage and sticks in the floor.
Here is a click by click screenshot extravaganza. I feel like a crazy person!
Mine doesn't have a blue haze when it stick in the floor, though, and if I exit right then and there, the picture STAYS in the floor like it's already placed. I have no idea why it would behave differently from yours, though. It's just a single left click.
EDIT: WAIT I FIGURED IT OUT! The blue glow is Display Preview, and enabling it changes it to allow Place in the subcommands!!!!
VICTORY! I have a stage above my window! Thank you SO much.
So TL;DR for those still trying to duplicate this, you MUST have Display Preview on.