Yes, the scenario you described is what happened. I had a similar experience as a host. A woman Instant Booked for her daughter for the same day. I emailed to ask if the daughter was comfortable with large dogs. The woman called to tell me that her daughter was not comfortable with large dogs. She ordered me to cancel the reservation. I explained all the ways Airbnb would punish me if I cancelled. She started screaming repeatedly, “That’s customer service.”. I told her that I was going to hang up and call Airbnb and that she should do the same. Airbnb refunded her and paid me. I was unhappy with this. I don’t want word to get out to guests that if by throwing a tantrum they can bypass cancellation policies.
I do think that Airbnb needs to figure out some way to communicate that guests need to pay for children if that is the hosts’ requirement as so many parents assume that children are free.