That worked for me on Android 10. On Android 13, I could drag to the bottom but then had to continue dragging my fingertip to a inside a circle that popped up and release my finger there to dismiss it, so just tapping the floating Live Stream window and then tapping the seems easier.
That was true for me with the v2.5x app on Android 13.
That was also true for me with the v3.0 app on Android 10…only it was multiple parent windows for the Wyze app. When I have some time to play with it more, I might count the number of times I activate and dismiss the feature and see about capturing some screenshots and/or video to demonstrate.