Just to know in general- if a host has a reason to cancel a reservation, it's their responsibility to do so from their side. And vice versa. Also a host can't change the terms of the reservation after it is confirmed, whether it be the price, the cancellation policy, the maximum guest count, etc. (Although due to ever-changing COVID restrictions, hosts may have to limit the number of people allowed to stay)
It's also good for guests to be aware that Airbnb does have a lot of glitches on their platform, so it could happen at some point that a host tells you that the prices that were displayed were incorrect, and that might be quite true, due to a tech issue, rather than any inattention on the host's part. However, a host who is paying attention and who behaves professionally would notice that the price the guest paid was incorrect as soo as the booking was confirmed, and should let the guest know about the glitch while the guest is still within the free cancellation window.
And Hosts also report having some of their settings mysteriously change on their own, like their stated check-in time changing to flexible, or guests somehow having been able to book a one night stay when the host has a 3 day minimum set. So if a host ever coveys to you that something on their listing info was a tech glitch, while of course they could be using that as some excuse, it's also very likely to be true.
Glad you were able to find another place that's even more amenable to you than the first- as they say, sometimes things happen for a reason that's unknown to you at the time.
@Vincent822