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Everything seems to be rebuilding correctly for me. Could you share a screenshot?
In some cases, on a created map, there's an "incredible" limit of 4 players.
Here's what happens:
It rebuilds one castle, rebuilds one dwelling of level 5, and then doesn't react to rebuilding a dwelling of level 4. And when I try to rebuild another castle, it displays in yellow the message I wrote in the previous post.
I won't post a screenshot because I deleted the saves, but I think I'll try playing again soon. Disabling the rebuilding feature has happened multiple times (not on just one map).