@Suliyman0 The solution is to do what you were advised to do- call Airbnb to cancel it, stating that you are uncomfortable with the booking, as the guest has made demands which do not fit with your listing.
There is no error- "confirmed booking for tomorrow even though I did not accept it"- If you want to be able to approve reservations before they are confirmed, you need to turn off Instant Book.
And if the booking is for tomorrow, it isn't an "in progress" reservation. In progress means the guest is already staying in your place.