Seeing the same on many versions of macOS 12

Yes, we have the same issue, this seems to be a broken flow by Apple to be honest. And the new guideline 5.1.1 to start the enforcement January 31th 2022 says that you have to delete the user account if the user wish, but if you do a fully delete data of the user and the user laters on wants to use the application again, the user full name won't be given to you again.