I am starting my Airbnb back up - I was hosting before the pandemic, and now have a different place to list. I had trouble as well with someone grabbing a premium weekend before I had gone to calendar and adjusted availability - and I didn't have instant booking turned on. I called Airbnb support and I also explained to guest and offered to work out an appropriate rate. I ended up cancelling - Airbnb waived any penalty because I had not ever cancelled before.
In the meantime - my current experience is that Airbnb spent their downtime figuring out ways to give them advantages at the expense of hosts. The UI and settings are more difficult to navigate - I've found places where the 'yes' and 'no' options are swapped - so we have to really pay attention to make sure our changes were not discarded by clicking the wrong option out of habit. Smart pricing doesn't seem to recognize special events like Super Bowl ??? Ridiculous.
I'm sure there are other options out their for hosts. I expect this relationship to be a short one at this point.