The first thing is the Staff Size. 6mm is still quite large for a vocal score, (go and measure a choral score by OUP, Novello, etc.) and it’s amazing what a difference 0.5mm or so makes.
Size 6 will give you a bit more room: my usual default is slightly smaller than that.
Next: your Minimum Gaps between staves and Systems are much too big. They define the ‘buffer’ between items. The System Gap is also much too big. The effect is to produce pages that are always massively overfull, so Dorico gets confused.
Your Justification percentages are also wrong: The second % should be larger than the first. I usually have the first value at 60%, and the second at 100%. That means that the page gets justified if it’s more than 60% full, and the stave gaps will be stretched as well as the system gaps.
You seem to have deleted the contents of the Flow Heading Template, rather than just chosen to turn them off in Layout Options. Either way, you’ve got no titles for each song as a result.
I’ve created a new Layout from scratch. The only manual adjustment is changing the Note Spacing in Flow 2 to fill the music to the end of its last page. Also, one System break for a new section at the start of the page.
This literally took under a minute.
ThreeWelshChildrensSongs.dorico (2.1 MB)
My solution for your page 10 would be to increase the Note Spacing for that Flow, so that you get 3 systems on the final page.
TBH, you probably want a larger lyric text size, which is going to make the layout flow onto more pages.
EDIT: I’ve spent a couple more minutes increasing the lyric size, to be more legible at the smaller staff size, and a few Note Spacing Changes to compensate.
I’d recommend everyone change the Engraving Option for Lyrics > Minimum SPACE (not Gap) to ⅛ space.