@Andy2341 If you're not comfortable with hosting guests in a shared space, you should deactivate your listing until circumstances are back in your comfort zone again.
If an already-confirmed booking meets the criteria outlined in the amended Extenuating Circumstances policy (see link pinned at the top of this forum) you may be able to cancel the booking without penalty. Otherwise, you'll have to engage directly with the guest. They might also be having second thoughts about staying in a shared home but are afraid to lose their money, so if you offered a full refund they might be persuaded to cancel themselves.