Hello 👋 Are you sure there are no extra instances laying around in the Management Console? Currently there is an enforced limit of 1 instance per company for non enterprise users.
If not, i'd have to investigate this more thoroughly. I just double checked on production with a community user account and it seems to work reliably.
It's worth noting that in rare cases there could be delays during the deletion process, causing the server to think you still have instances. In that case, i'd just try again after half a minute or so.