Fresh, clean install no extra themes, no extra plugins.
1- Directory plugin doesn't create paid, non-paid roles. Just the usual WP roles are listed.
2- Directory plugin default signup role assignment: subscriber.
3- Subscriber role capabilities: see, add, edit listings.
4- Payment type: free listings.
5- Use credits (setup as seen on attached file).
After a "free" user is registered and logs in, their cannot add a free listing, neither clicking the "Add Listing" button provided by default plugin theme, nor by using the "Listing >> Add Listing" menus from WP backend. After a user tries to add a listing they are taken to "Listings" page.
One more thing: I reported a bug yesterday and since then the plugin was updated, I just want to stress out that I removed my WP install (files+DB) and installed it again, so, there are no traces of previous plugin version.
If you need backend access, FTP access, I can provide it, just let me know.
Edit: Regarding issue # 1:
Arnold has explained the following:
"One of the problems with the Directory Paid and unpaid scheme that used to be used was that you couldn't combine it with Classifieds which had it's own roles. You can only assign one role to a user.
So the new version let's you create and assign your own role so that for mixed use you can assign the same rolle to both Directory and Classifieds."
so, I consider such issue covered.