Solution
1. Enter the the command " pickfirst " in command panel and set the value to 1.
Check the delete key function now.
2. Reset Autocad to it's default setting
Search for " reset settings to default " in start menu, option shown in image, select it and when asked choose Reset custom setting, and voila, AutoCAD resets to it's default setting.
Start AutoCAD and try delete key function.
Please like or comment if it resolve your problem.
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