Upgrade a village to a town after Varnhold

While I was in the Vordakai’s tomb, I had an “Upgrade village to town” project going on. After i got back in to my kingdom territory, i received a notification, that the project was successfully completed. Despite this, none of my villages have an upgrade option (i have 6 captured regions, all with more than 6 buildings in a village). I also have my capital upgraded to a town.

Is this a bug? Is this happening because i was given a Varnhold territory with a town in it? Can i upgrade a village later?

Varnhold is a town, I believe, so when you cleared Vordakai’s Tomb and added Varnhold to your barony, it might have taken up the slot for a new town. That’s just my speculation though.

not updated what to do?