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Thanks for the information provided to the Illustrator team.
We are able to reproduce this issue at our end and the engineering team is currently isolating this issue further to get to the root cause.
With Best Regards,
An error occurred while saving the commentAnonymous commented
Quitting Safari worked for me. As soon as I did the hand tool immediately started working again in Illustrator, and at least for now, continues to work after relaunching Safari. Weird bug, I have no idea why they should be related.