False - you are 100% wrong Daldaen.
If you are not KOS and corpse is not KOS, you can drag. This is how it worked on live.
Source: Dozens of CRs on live.
However, many didn't know this, so to cater to the dumb people, many guilds had simple policies of no one dragging.
Also, this was not implemented at launch. Originally anyone could drag. But it was nerfed to check corpse faction to make CRs more difficult. Otherwise people would just log in a non-kos to cr a raid easy mode.
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