While #x^2+y^2=4# is the graph of a circle with radius #2#, it is not a function. A function only has one output for each input. There are several ways to see that this is not the case for a circle. One way to see this is to try to solve for one variable.
Subtracting #x^2# from both sides gives #y^2=4-x^2#.
Taking the square root gives #y=sqrt(4-x^2)# and #y=-sqrt(4-x^2)#, two separate functions. The reason for this is because the square root of a number can be positive or negative. For instance, take #sqrt(4)#. Both #2^2# and #(-2)^2# are equal to #4#. Therefore the square root could be equal to either of them.
Because #x^2+y^2=4# produces two functions, it is not a function, because plugging the same #x# into both equations produces two unique outputs.