This should be fixed in the next version. On the 3rd death, the bot will make a new instance now, whereas before, the logic would have required 4 deaths. This is so the setting makes more sense, if you have it set to 1, after the first death, the bot makes a new instance.
However, this is only for the Grind Zone Id area. If you have to travel through another area first to get to your grind zone, the bot does not create new instances, and there's no setting to control that yet. It will always travel through the non-grind zone instances. A few more things have to be added to correctly implement that when it comes to death, so that's the current behavior.