If Primary Contact is removed from Household through Manage Household screen, the Contact is not removed from Household and Primary Contact Field on Household is updated to blank value

I am facing an issue while removing the Primary Contact from Household. As I remove the Primary contact from Household through Manage Household button it should pick up some other random contact from Household and set as primary contact and for the removed contact a new household has to be created. 

This functionality was working fine few days back, even it works fine for first 1 or 2 records but after that the functionality is not working as expected i.e when I remove the Primary contact from household it does not remove the member from household and the Primary Contact is set to blank value.

Scenario -

Steps 1 - Account - A1 Household

Step 2 - A1 Household Members - C1(Primary Contact), C2, C3

Step 3 - Click on Manage Household button from Account record

Step 4 - Remove Primary Contact C1 from the household by clicking on 'x'. This will automatically set the Primary Contact look up to blank which is available at bottom of the Manage Household screen.

Step 5 - Click on Save button

Expected Result - C1 has to be removed from current household and a new household has to be created and another contact from the same Household should become the Primary Contact.

Actual Result - C1 is not removed from the current household and Primary Contact of current household is set to blank value.

Note - I have tried this in multiple sandboxes, production and the same issue is occurred.

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