I'm still having this problem too even after the update on the 4th November if I try to sledgehammer things away I can do it with one item then have to click the pointer tool (or any other tool in the bar) before going back to the sledgehammer and deleting one more object or two if I'm having a "lucky" day 🙄 Sometimes the items seems like it has been deleted and goes through the animation of it disappearing but it just pops back again. As someone else mentioned bulldozing the lot looks like it is going to work but then it doesn't, nothing has changed on the lot. Before the recent update all I needed to do was go back to the main menu and reload my game and it was "fixed", now I have to quit the game, clean out all the cache files etc and relaunch which is really annoying when you've started a vanilla game (to test the update) and it's the first sim and house you've placed.
I play on a windows gaming laptop, direct x 11, no mods or cc ever.