I've been encountering this same issue. When you make a server that has most the hardcore settings but a few tweaks, then you loose the hardcore tag, so it doesn't fill up as often.
Overall, it is hard to play the team game in hardcore with this new squad spawn limitation. It eliminates the need for the last squad member to stay alive, despite it still giving the warning that you're the last member of the squad alive. Seems half baked or developed by someone who hasn't played hardcore back in the BF3/BF4 days. Really hoping this gets corrected soon.