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I am new to Illustrator and learning how to make icons following this link https://helpx.adobe.com/in/illustrator/how-to/icon-design.html
I am stuck at step 5. I am not getting the corner widget outside the shape as highlighted in the image on step 5. Because of this, I am unable to get inverted (outside) corners for the top rectangle.
So, my icon looks like this
It looks like both rectangles are not merged, that's why when you make the round corners, the top rectangle gets rounded at the bottom.
Selecting both shapes, use the Pathfinder Panel to Unite them and try again
