The convenience of AirDrop makes file transfer a breeze. However, for Mac users, not seeing AirDrop efficiently located in the Finder sidebar somehow reduces such benefit. You can still access and use AirDrop but not via the sidebar.
This happened when users upgraded their macOS to Sequoia version. To top it off, the cause of the issue is not yet known.
Fortunately, there are workarounds that you can try to resolve the problem. Let’s look at them one at a time.
Troubleshooting AirDrop Issue Not Showing up in Mac Finder Sidebar with macOS Sequoia Version

Let’s try a simple keyboard shortcut. Try pressing the Option button plus Command plus ESC. Next, select Finder and relaunch it. This method forces the Finder to perform a restart.
If this does not work for you, try to verify if AirDrop is enabled in the Sidebar tab. Tap on your Finder and head over to the Settings menu. Select Sidebar. Now, look for AirDrop and make sure the box is checked next to it.
Another possible solution is to disable AirDrop and add it again on Finder as Favorites. To do so, first turn off AirDrop in the Settings. Then, force quit Finder by launching the app terminal and entering the command: killall Finder. This will reboot your Mac. Once rebooted, you can add at least 4 favorites including AirDrop.
Turning off your other Apple devices can be helpful as well. There might be some interference. But many users claimed that the problem was resolved after putting their Apple devices to airplane mode or turning them off.
Lastly, you can try turning off FileVault. On System Settings, navigate to Privacy and Security. then look for FileVault and disable it.
In Conclusion
There are several possibilities that will help fix the AirDrop issue on your Mac. You just need to try these solutions and hope that they will resolve the issue.