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As far as I know, it is a bug.
In the free tier plan you don't have to pay anything. Only if you upgrade your account they can charge your credit card.
Have you used the free volume space of 200GB already with other instances or are you trying to make it too big to justify the additional cost?
I am not only using 100 GB to save a backup of my website
As long as you stay within your free tier limits it will indeed be free.
do you create an VM before without delete storage? Check Storage, Boot Volumes usage