Note
This is a feature called Touchscreen mode. If you're experiencing this issue, you've probably enabled it by accident.
To disable it, go to:
Game Menu → Options → Controls → Touchscreen: OFF
When i try to shift click on an item in my inventory it doesnt work, and when I try to move items around in my inventory it wont pick it up. Also I have to hold my mouse down just to move blocks.
Also, both in the singleplayer and multiplayer menus, it is not possible to scroll, and all the entries are always selected and show the arrows to play/join or move the entries.
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How would i turn this off?

Game Menu -> Options -> Controls -> Touchscreen off
You have turned on the Touchscreen Mode.