The extension stores log information for executed deployments until a maximum of ten deployments where it then starts to automatically remove older deployment log information. You mention that in your scenario it fails at the seventh deployment so it seems it’s reaching storage limits before starting to remove older deployments. The storage limits are the ones associated with a Webtask so it’s 500KB.
Previous versions of the extension used to store actual file contents like the rule’s code in the deployment logs which meant that storage limits could be easily reached, however, the latest version of the extension no longer stores actual file contents so hitting the limits before the ten deployments is strange.
You mention that you started using the extension on a previous version so if you used the update to the latest version built-in mechanism, any storage data is maintained which would mean some deployment logs could still be storing file contents.
If you uninstall and then install latest (I believe 2.2 at this time) do you still hit the error at the seventh deployment? If yes, can you update your questions with information about the number of rules, pages and databases that you’re deploying through the extension.