Hi Nancy. I use Moodle 2.6 and this sometime happens to us.
If you set the assignment settings to "Require student to click submit button -- YES" then a submit button will appear for the students when they upload their work. If students upload their work and FORGET to click the submit button, it wll display as a Draft on the teacher's end until the student goes back to the assignment and clicks that submit button.
However, If you se the assignment settings to "Require student to click submit button -- NO" then there will be no submit button for the students. They simply upload an assignment and it automatically is submitted. If a student decides to update the file, then when they upload a new file and clicks save, then the assignment will re-submit for a new grade (though the old grade will still be visible until a new grade is entered).
In the second scenario, drafts will occur if a student starts to upload an assignment, but no save it, or clicks on the upload a file, but never actually upload a file.... or at other times, they just come in as drafts. We had three kids' assignments come in as drafts this morning. We just had them goin, and re-save the assigment, then the appeared correctly.