Touch Gesture Expert in WinForms / C#

Note this project requires a touch screen. See the attached video. And also the attached C# solution. I'm having problems implementing touch gestures in C# / WinForms. When trying to drag a box, as you can see, it will only move in a straight vertical or horizontal line initially. Diagonal dragging does not work. After dragging for a period, then diagonal dragging starts to work, but by this time the box has moved and no longer tracks correctly with the finger. The task is to fix this bug. The box should always track with the finger no matter how you move it, any direction, diagonally, etc.