Note leaders can't touch an entity.

Is there a bug in the new release, V1R3.1? I am using the 64-bit version on Windows 7. When using the SMARTLEADER command, I cannot place the arrow on an entity and mouse to the next vertex in the leader. Doing so produces a ghosted line while moving the cursor. Clicking on the next arrow vertex then exits the command. An arrow placed in the middle of nowhere, or close to an entity, is sketched as expected.