So the issue was happening on Beta and still is on 11.0.1
Only way to resolve the issue was definitely to use the command rm “/Volumes/Macintosh HD/var/db/.applesetupdone.” in recovery.
New account is working perfectly fine but when trying to reset other admins accounts, error!
Other admins also don't allow their own deletion.
Activated ROOT and attempted from ROOT both change password and delete the old accounts, same issue.
Any suggestions, beside erase and reinstall...
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The Apple TV HD model doesnt have this option by default, the 4k should have it. All documentation backs up this information.
Why this doesnt show in some Apple TVs 4k? don't know, the option should be there.