I've ran into the same issue as a few others above.
I sleep the night, get to day two and find myself unable to make anything above 1 ingot. Even when 3 are on the anvil it keeps making short blades. If it helps, the hammer sound stops too so you don't even know if it's working and you're just swinging silently.
Which is a shame really, I was in the middle of recording a video for you :(
I'm having the same problem I think it might be caused by the snapping to anvil mechanic that got introduced as i had 2 ingots on the anvil snapped at opposite ends which only allowed me to make a dagger blade. and the other ingot became unusable. Having said that you can still make short swords with a dagger blade but you get a funky message that says you created a dagger and one hand sword at the same time.
My suggested fix: Remove the snapping to anvil.
