Copy only backups are not being deleted by xp_slsSmartCleanup.
By default, LiteSpeed will ignore copy-only backups except on secondary replicas in AlwaysOn Availability groups, in which case it will allow deletions. This is the default behavior when the parameter is not specified. More information can be found on this in the LiteSpeed help file. Search xp_slssmartcleanup
Workaround:
In order to delete copy only backups using slsSmartCleanup, you must add the @CopyOnlyBackups argument with the value AllowDeletes in the script. For example,
exec master.dbo.xp_slsSmartCleanup
@database='LiteSpeedLocal'
,@BackupRetainDays=1
,@CopyOnlyBackups = 'AllowDeletes'
go