The settings are all fine. It appears to be when i get a notification on Instagram about someone starting a live video, I've got to tap the notification for the counter to go away. So will keeping doing that and see how I get on. Thank you 😊.
@Chrisc297: Please can you also try heading to Settings > Apps > Instagram > Select a notification sub-category, if applicable > Show As Pop-up > Off. Now, head to Settings > Notifications > Advanced Settings > Floating Notifications > Off.