Based on everything you have described, I suspect this is an issue with how Contacts on your Mac is accessing or managing your contact lists, rather than a general Mac setting you’ve accidentally changed.
The most important clues are that you cannot delete or rename lists, dragging contacts into lists does not work, and yet all three operations work on your iPhone running iOS 27.
This suggests we should investigate which account owns the lists and whether Contacts on your Mac is functioning correctly.
Here is what I would try, in this order.
Check which account contains the lists
Open Contacts on your Mac and examine the sidebar. Do your lists appear under iCloud, Google, Exchange, or On My Mac?
Apple explains how Contacts handles multiple accounts here:
Apple Support: Add contacts from iCloud, Google, and more to Contacts on Mac
Different account types can have different restrictions on list management. For example, Apple notes that Exchange contacts can belong to only one folder at a time.
Test whether the lists can be managed on iCloud.com
If the lists are under iCloud, sign in at iCloud.com/contacts using the same Apple Account.
Try renaming one duplicate list and, if appropriate, deleting it.
Apple provides instructions here:
Apple Support: Create and manage lists of contacts on iCloud.com
If the lists can be managed on iCloud.com but not on your Mac, that would point toward a problem with the Mac's Contacts app or its local synchronization state.
If they cannot be managed on iCloud.com either, we should investigate further before deleting anything.
Check Apple's explanation about lists that cannot be deleted
Apple states that a list cannot be deleted if a Smart List uses a condition such as “Card is member of” or “Card is not member of.”
You mentioned that Last Import is your only Smart List. Nevertheless, it is worth checking whether any other Smart Lists exist.
Apple's instructions are here:
Apple Support: Delete lists and Smart Lists in Contacts on Mac
Also check Apple's instructions for creating and editing Smart Lists:
Apple Support: Create and change Smart Lists in Contacts on Mac
However, a Smart List dependency would not necessarily explain why renaming is grayed out and dragging contacts fails. I would not assume this is the sole cause.
Test whether you can create and manage a new list
In Contacts on your Mac:
- Choose File > New List.
- Give the new list a temporary name.
- Try dragging a contact into it.
- Select the list and choose Edit > Rename List.
- Try deleting the temporary list.
Apple's complete instructions for these operations are here:
Apple Support: Create and change lists in Contacts on Mac
If the new list works correctly, the problem may be specific to the original lists or the account containing them.
If the new list also cannot be renamed, edited, or deleted, that would suggest a broader problem with Contacts on your Mac or the account configuration.
Check your iCloud Contacts settings
If you use iCloud, open Apple menu > System Settings > your name > iCloud and check that Contacts is enabled.
Apple's instructions for setting up Contacts across devices are included here:
Apple Support: Add contacts from iCloud, Google, and more to Contacts on Mac
If Contacts is already enabled, I would restart the Mac and check for available macOS updates before attempting more extensive troubleshooting.
I would not turn iCloud Contacts off and back on, remove accounts, or delete any local contact databases until you have a backup.
Back up your contacts before cleaning up duplicates
Since you mentioned that the duplicates appeared after merging contacts from your phone and computer, I recommend making a backup before deleting any lists.
If the contacts are in iCloud, Apple explains how to export all contacts into a vCard file here:
Apple Support: Import, export, or print contacts on iCloud.com
Deleting a list is not the same as deleting the contacts themselves. However, it is important to establish which account contains the lists before cleaning up the duplicates.
I would not assume that you have accidentally changed a general Mac setting. The fact that renaming, deleting, and dragging contacts all fail on the Mac, while those operations work on your iPhone, makes it worth investigating the account and Contacts app before changing system settings.
One question would help narrow this down considerably:
In the sidebar of Contacts on your Mac, are the affected lists under iCloud, Google, Exchange, or On My Mac?
That information, together with whether you can rename a list on iCloud.com, should help identify the next troubleshooting step without risking your contacts.