Transactions cannot be expected to execute.

3.5.0 1d34c491@200722 release

create table test (v text);  
insert into test (id,v) values(1,'v1');  
begin;  
replace into test (id,v) values(1,'v2');  
delete from test where id=1;  
commit;  
select count(*) from test;  

 ----------   
| count(*) |  
 ----------   
|        1 |  
 ----------   

Found in a transaction, ultimately unable to delete. Is this expected?
Did I misunderstand that I thought the transaction would end up being serialized?

It is stated in the document that there is a limit to the accumulation of transactions. Can this limit be configured there?

Start by reproducing the SQL transaction sequence from the issue against the reported 3.5.0 release. Read the transaction documentation referenced in the report, including the stated transaction accumulation limit, and determine whether the observed row count and configuration question match documented behavior. Done means the behavior is explained and any required correction or documentation scope is clearly identified.