With V 7.10 - WED V6.871 :
this feature does not work anymore ...
For connecting two nodes with an edge, either click on the first node, drag the 'rubber band' with pressed [Ctrl] and left mouse key to the second node, and drop it there. Or click with [Ctrl] pressed on a node to draw an edge from the previously selected node to this one.
No way to connect two nodes. Can you confirm ?