Once, I was cleared to land, then a live plane flew ABOVE me, yet I was the one who had go around.
Yes, I’ve had that quite a few times. Most often at KLAS for some reason. Little old me in a single piston, as a huge jet thunders above me.
I think if you have "Live traffic turned on, the AI can do little to move them or tell them to go around, so it tells you. I found by flying in at times when there is no other traffic, say 0300, I get right in. Might be the issue. Try it and see?
I’ve seen live traffic being told to go around, and for once it was me that caused it. I was number 1, airliner was number 2. I was on downwind, about to turn to base when I was cleared to land. The airliner coming in much faster than me cut across my view while I was on base. As they crossed threshold they were told to go around, and I landed normally.
This was live traffic, I don’t use AI.