Well, now we know why your plugin was not deleting TXT records. It can't ADD them either.
About a year ago GoDaddy started restricting API access to its DNS system. Is it possible they have restricted it further and now affects you? We saw many people affected back then. This is one of the better threads on that: Getting unauthorized URL error while trying to get cert for subdomains - #5 by adorobis
No you don't. The normal case is to add one, satisfy the challenge and delete it. At the beginning of each cert challenge there typically isn't any.
Which GoDaddy DNS plugin are you using? Because this one (link here) says it needs Certbot 2.7.4 which is much later than the one you have. Unless you are using an older plugin too I suppose
Is there any info in the /var/log/letsencrypt/letsencrypt.log
? It is very long but you might be able to see something from this DNS plugin. Copy it to a .txt file and upload if you want us to look.
You could also try this command. It will pause and let you check the DNS records before sending the challenge to Let's Encrypt (in this case to the LE Staging test system)
sudo certbot renew --dry-run --debug-challenges -v
Use any DNS query tool or even your own DNS control panel if it shows TXT records