(Apologies in advance for a long, boring, reply here! bob)
The test for a "dragging" clutch in the old days was to shift into reverse.
The transmission should be thoroughly warm for the test. Let the car idle in neutral with the clutch engaged. De-clutch (push down on the clutch pedal) and wait a second or so (to allow the spinning gears to stop) and then shift slowly and deliberately into reverse. If there's any gear-grinding noise the clutch is not releasing. I experienced that numerous times in the "old days", when the clutch throwout bearing was worn (in VW's it was a carbon bearing!).
With apologies, I don't know if the C7 with the M7 transmission has synchro rings on reverse. I've never had a car with that (unless our C7 has it?) but I think some transmissions do now (?).
I'm SURE most of you readers already know if the C7 with M7 has synchro rings on reverse (??). Maybe I'm wrong and nobody has it??
This test would be far less definitive if the C7 with M7 does have snychros on reverse. You'd have to try to "feel" the synchro rings matching the speed, and it would feel the same for both 1st and reverse. With experience you could feel that by sensing whether it felt the same when shifting immediately after de-clutching compared with waiting a second or so, but engaging the gear with the same pressure on the shift lever. If it feels the same probably the clutch is not releasing.
BTW, that "feel" of the synchro rings matching the speed is exactly the same feel you'd sense making a low speed shift without using the clutch pedal (without de-clutching). But nobody would recommend doing that! It's easy to do at low speeds (but to sense the difference you'd need to try it shifting quickly and then increasingly with a greater hesitation, for upshifts without using the clutch). If you upshift with exactly the right hesitation you do not need to declutch.
In the 1950's in Germany the driver's license test required demonstrating the ability to drive a car with a non-synchromesh transmission (then standard on the not-for-America VW's). Up-shifting a non-synchro transmission with the perfect hesitation is exactly the same whether one uses the clutch or not. The transmission gear-speeds are perfectly matched with the car's speed, making the clutch completely unnecessary to effect the upshift.
Of course downshifting was far more difficult, requiring "double clutching" (double de-clutching to some) and speed matching with the clutch engaged. You had to know (to feel) the right RPM to speed match and also the right hesitation to engage the lower gear. Long ago I could do that; no more!
Apologies for being a long-winded old man! Probably every one of you already knew all that! Happy pandemic ending (eventually) to all of us, bob