Symptoms
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Backups are not rotated according to the value of Maximum number of full backup files to store and Keep backup files for settings in Tools & Settings > Backup Manager > Schedule or Domains > example.com > Backup Manager > Schedule 
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Backup rotation fails with the following error in /usr/local/psa/PMM/logs/pmmcli_daemon.log.<timestamp>:ValueError: time data '1' does not match format '%Y-%m-%d-%H%M%S' 
Cause
This is a Plesk bug with ID #PPPM-10423 which will be fixed in future updates.
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Resolution
As a workaround:
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Connect to the server via SSH 
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Create folder to back up the log files: # mkdir /root/backup-PPPM-10423 
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Back up the log files: # cp -a /var/log/plesk/PMM/*.log* /root/backup-PPPM-10423 
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Delete the logs from the original location: # rm -rf /var/log/plesk/PMM/*.log* 
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Restart the server to make sure there aren't stuck or zombie processes running