Smart Guides & Snap to Point: Neither are working!

go to top bar WINDOW then drop down to PROPERTIES, this opens up a selection panel and this helps... a lot

Hi Srishti, Replying to you, since you work for Adobe. 
I've been a professional designer (truly my day job)for close to 20 years now, and have used every version of Illustrator from 9.0 up to CC2021. In very simple terms, Illustrator used to have a simple function called "snap to guides."

With this enabled, points objects withn a user defined tolerance would snap to nearby guides. What was great about this was it wasn't the document's grid (often a specifc line defined by the person doing the illustration rather than a rigid grid with many intersections rather than just one <- the guide). These also aren't smart guides, which become less and less useful as an illustration becomes more complex.

The ability to snap to a simple guide seems to have been lost within Illustrator. It's still there in InDesign and a big reason I don't prefer Illustrator – it defies every attempt at precision. Still, InDesign isn't the tool for all things. Illustrator cannot be replaced, esp in a hybrid design + motion graphics workflow. Good old "snap to guides" has been sorely missed for some time. 

Please tell the product people at Adobe, a lot of what's missing in Illustrator and throughout CC apps is simplicity.

When proferssional users define the product, that's who it works for. 
When students and neophytes wants define the product, that's who it works for.
When marketing teams who never use a product define it, it works for no one.