I just thought I would add my recent awareness of this. In the 10 years + of 
using the Apple Time Capsule (with 3 USB hub connected external drives) I 
hadn’t yet reached the point where any of the Macbook backups had reached a 
full state on their respective drives. My own MBP back up drive on the TC (a 
2TB HDD) reached this state during this week and I waited anxiously for it to 
either have a hissy fit or proceed as anticipated and free up space by deleting 
oldest backup content. 

I am pleased to say the latter resulted - with a message popup which said it 
will delete oldest content to make way for new backup content.

Regards

Pete.
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