Point On or End Point on the SmartSketch dialog must be set to draw circles that are tangent to other elements.
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On the Draw toolbar, select the FreeSketch Command
to open the FreeSketch Ribbon.
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On the ribbon, set the Circle element type and clear the other element type buttons.
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Drag to sketch the shape of the circle or the diameter of the circle.
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Adjust allows the software to adjust the geometry that you draw.
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When Adjust is off, the software interprets the exact movements of your pointer.
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When Adjust is on, the software interprets your pointer movements as a circle.
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If Maintain Relationships is set, the software places relationship handles.