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Because S2 is closed, the resistance between C and D is zero because R2 is short circuited. Therefore the potential difference between C and D is 0 Volt (no energy is needed to let a current go through a zero resistance)
oldschool
The voltage across R1 = 1.2A*10Ω = 12V = Vbc so there can't be any voltage across R2 = Vcd. KVL is satisfied
oubaas
If you parallel 0 and R2, then Rp = R2*0/(R2+0) = 0
Vcd = Rp*I = 0*I = 0