The answer is to look for any open heroku sessions (you can use 'heroku ps' as john points out above), in my case I already had a started a heroku console session 30mins earlier and just forgot about it. So if you see the "Cannot run more than 1 Free size dynos" error just close any existing console or other heroku sessions you have open.
Hopefully this saves someone the ten minutes it took me to come to my senses.
run.4859 (Free): up 2016/01/12 21:28:41 (~ 7m ago): rails c
So the numbers 4859 represent the session that is open and needs to be closed. To fix the error you need to run(Obviusly, replace the number 4859 by the number obtained):
In my case, I ran heroku ps:restart to restart all dynos and the heroku run * command worked again.
Examples
If you just have one Git remote for Heroku, use this:
heroku ps:restart && heroku run *
If you have multiple Git remotes for Heroku, use this:
heroku ps:restart --remote your-remote-name && heroku run * --remote your-remote-name
OR
heroku ps:restart --app your-heroku-app-name && heroku run * --app your-heroku-app-name
Replace * with your command e.g. console for Rails console.
What I meant by your-heroku-app-name here is the sub-domain for your Heroku app. For example, if your app URL is https://cute-cat.herokuapp.com, that means your-heroku-app-name is cute-cat.
If you are not sure/forgot what's your Git remote name for Heroku, git remote -v can help you with that.
"What happens if I take no action on my free apps or databases or do not upgrade to a paid plan?
free dynos will be scaled down to 0 and hobby-dev databases will be deleted starting November 28, 2022."
"Starting November 28, 2022, free Heroku Dynos, free Heroku Postgres, and free Heroku Data for Redis® plans will no longer be available. If you have apps using any of these resources, you must upgrade to paid plans by this date to ensure your apps continue to run and retain your data. See our blog and FAQ for more info."