Clicking on "Save" and "Save As" option seems to be doing nothing.
I have deleted "C:/users/username/pictures" before trying to save image from snipping tool. (deleted because it's a office laptop and thought I won't be saving any picutures on it)
Because snipping tool doesn't find this folder, it doesn't do anything. It doesn't even warn for missing folder or fallback to another location. Created "pictures" folder again and it's working now.
Snipping tool can take it as bug or enhancement.