Game says I use too much 128x128 and removes them all, but I use only 7 logos

I got a strange situation here. Here is the scenario.

I make a CAW. I used 8 custom paint tool logos on him.

I removed one logo. 7 active logos remain.

I try to add a new logo and the game says I have reached maximum of 8 logos bla bla bla if you select to use this logo all previous will be removed.

what gives???

I even saved that CAW with 7 logos on him, reopened the CAW and it shows the same message when I try to give him the 8th logo.

If you place a logo, the game will still think it's there unless you go to 'remove layer' and get rid of it that way. I'm guessing you replaced one using 'edit layer'. If you did, then the game still recognises it as on the CAW. You just need to delete that layer and it should give you the slot back.