Drag to fill/autocomplete dates only increases year, not day

Question

Please see screenshot below. When I dragged on the blue square in highlighted cell, I only get the result below.

I have set correct region in sheet settings. I have set the correct date format in the cells (how do you verify that, it makes no change...)

To set the cell format, I clicked on the column header to select all column rows, then clicked like below screenshot:

Answer 1

How to fill dates by exactly one year by dragging the cell.

Please do the following:

First create the second cell and then select and drag BOTH.

It has been asked before but never answered correctly.