Hi Michelle,
I have followed the exact process you have described.
I have no problems.
4. When I remove the snippet, it will show the original template content.
5. When I add a new snippet (with context menu) I can still pick any other snippet, and it will show that other snippet.
Does this happen to you everytime you do this?
Or did it happen only once?
If it keeps happening, please contact support and log a support case.