One would expect that the formula =MAX(SMALL(D2:J2,{1;2})) would return the same as SMALL(D2:J2,2) (the second smallest value). And that =SUM(SMALL(D2:J2,{1;2})) would return the sum of the two smallest values. However, SMALL seems to look at only the first element of the array argument. The same seems to be the case for LARGE.
This always works for me with all versions. Did you enter the formula as array formula (Ctrl+Shift+Enter) ?
Indeed, it does work entered as an array (Ctrl+Shift+Enter). Sorry, I thought I'd tried that.