I was trying to make a woolen carpet but it didnt work. I placed two blocks of wool next to eachother (at crafting table and in inventory) but to no avail. I tried it with white wool and with brown wool. I asked my friend to try it too and he tried it with yellow wool. Also nothing.
As it did work with me before (but that was a few weeks ago) I think it is a bug in the latest update.