Hello Harold
I am V. Arya, Independent Advisor, to work with you on this issue. MAX function is working correctly.
Even if you drag =$A$2:$A$6 OR MAX($A$2:$A$6,0), you will get the same results. So this is not specific to named range.
Hence, while within a function it behaves the way it should, when you try dragging this without any function, it looks that it ignores $ when this is a range, hence giving A2, A3, A4 etc.