In the latest Windows Build 22621 rumored to be 22H2 RTM, Tailscale sets itself as Private Profile under Windows Firewall. So this machine cannot receive files via Taildrop. However, if we change Tailscale settings from Windows Firewall and set to Public, the machine starts receiving Taidrop files sent via other machines. However, after reboot, Tailscale again sets itself as Private and Taildrop stops working.
This is a bug which devs need to fix on next version of Windows. I changed firewall settings of other apps to notice that only Tailscale’s settings were reset and other apps settings persisted after reboot.