This game does work but it is a little finicky.  This is how it works.

Once you find one of the words, click and release, (don’t click and drag), on the first letter and run the mouse over the other letters (they will highlight with a color), when you get to the last letter, simply click that last letter and that word will get crossed out up top.  Words can go backwards & diagonal.

Your next clue depends on the success of this puzzle so this must be completed before the next step.

 Good Luck!!!!