Cannot replace mean beds with comfy beds

I have built many houses and then once I got more into the game and got the items to build comfy beds, I tried to replace the beds but when I try to place the comfy beds, it just highlights the part of the house I’m hovering over and has a red X (doesn’t show in screenshot) and doesn’t give me the place option. If I move it outside of the house it will let me place it, just not inside the house

Expected Results:
Place a comfy bed in the spot where the mean bed used to be.

Actual Results:
Does not let me place the bed inside the house, only highlights the area of the house where I am pointing