So though I got not responses to this post I learned something through research over the course of the day.
1-In the app under booking settings it asks how often you want to book. If you click the option to book as often as possible AirBnB CAN book your place at lower than you minimum rate. It says so clearly.
2- allowing guests to book more than 3 months in advance puts hosts at a disadvantage with pricing using Smart Pricing as ALL your dates have to have the same minimum price. Shortening my booking settings to 3 months in advance as opposed to 6 months gives me more room to adjust pricing.
3- I wanted to repeat something valuable Someone said in another thread. Hosting is a JOB. We can not just expect AirBnB to do the work for us. It’s important to stay on top of your listing and do all your homework.
For anyone still reading, I did decide to accept the booking. I know it will come back to me in another way and in the meantime it’s a small price to pay for the lesson.