@Kinsleigh0 when a guest wants to cancel on us and if we want to waive the penalties then I (as the host) message the guest stating our side of the deal and then ask them to call Airbnb to execute the change. Most times customer support ring me to confirm the agreed refund/no charge but it always gets fixed quickly.
S0 my suggestion is ask the host to message you with what they will allow and then call Customer Support to do the change. If they can't do it call back until you get a good one who can.