Unable to backup as iCloud

I have only used 197 MB of 5 GB. I have deleted all prior backup. I have only selected iCloud email (which barely has any emails), Password Keychain and Contacts for back up. Yet, I keep getting the message that iPhone cannot be backed up as there is not enough storage in iCloud.

I have even contacted Apple support and they have not been able to help.

Can someone please provide a solution?

No other devices back up to this cloud.