You have to move the drag the king to the second square, not the first.
Castling doesn't work...

I know it's a long shot and highly unlikely, but still: Is it possible that you are trying to preform an illegal castling?
Two possibilities:
It's not legal in the position eg a square which the king moves through is attacked, or king moved already
or (which I guess is more likely given your rating)
Technical software issue. Suggest closing browser and restarting. Potentially even contacting technical support if that doesnt work

No square is under attack, and neither King or a rook was moved... that is why I'm asking. Restarting a computer didn't help either... Some sort of bug I guess, cause it's not working in any of my games.

If you are using chrome/firefox, try IE. I know it's not ideal, but people say it solves some move-bugs, for example not being able to take with pawns.
for me it doenst work...
How are you trying to do it?
both ways it is explained in the video from chess.com

for me it doenst work...
How are you trying to do it?
both ways it is explained in the video from chess.com
What game and what move did you try it on?
for me it doenst work...
How are you trying to do it?
both ways it is explained in the video from chess.com
What game and what move did you try it on?
30 minute chess.... in the bottom line was the king and the two towers only - all in their staring position...

was this solved ? I am encountering same issue few times
Nothing to be solved. Castling works as intended on this site.
If you have issues then post the game and the move number where your problem was.
Ive been trying different scenarios in the analysis section. But castling seems to be disabled when I make my own scenario. Is this normal?

Ive been trying different scenarios in the analysis section. But castling seems to be disabled when I make my own scenario. Is this normal?
As long as the set up doesn't remove the castling flags, then you should be able to. If you're using the clear board it will clear the castling rights options and you'll need to recheck those that are legal.

Here's the new rule on how to castle on Chess.com: (I copied and pasted the following below from their 'Ask a Question' section.)
To castle, simply move the king two spaces to the left or right, OR move the king on top of the rook you want to castle with. The rook will jump across and to the other side of the king automatically!
My castling is not working, even in analyzing board not..