I want to drag a rigidbody by another rigidbody, keeping set distance.
Does the dragged object have to be a RigidBody? If so, you could try changing its mode to MODE_STATIC or MODE_KINEMATIC. Then you could manually control its position. https://docs.godotengine.org/en/stable/classes/class_rigidbody.html#enum-rigidbody-mode
Yes, you can use Joints. PinJoint works pretty well. I have some code in this thread. https://godotforums.org/discussion/comment/55597/#Comment_55597