Hi. I’ve got a problem with automatic merge. When I try to press E and click on the dot, that needed to merge, the merging is leaving to other dots (those don’t needed). Changing snap target, snap element or pivot point, copying to factory settings empty scene doesn’t helps. (I don’t what did I clicked before that, it worked well before.)
Your images are very small so we cant see a lot. Maybe select the vertex that is at top at last. Looks like your pivot center is the vertex in the middle. This wont work. Choose active element as your as pivot center and it should work. Works here.