I tried recreating with today's latest build.  It works for me.   

step 4:
$ oc create -f cmd/service-catalog/go/src/github.com/kubernetes-incubator/service-catalog/contrib/examples/walkthrough/ups-binding2.yaml 
Error from server (Forbidden): error when creating "cmd/service-catalog/go/src/github.com/kubernetes-incubator/service-catalog/contrib/examples/walkthrough/ups-binding2.yaml": servicebindings.servicecatalog.k8s.io "ups-binding2" is forbidden: ServiceBindings test-ns/ups-binding2 references an instance that is being deleted: test-ns/ups-instance

Could you verify if you can reproduce this still?

Note that if the ClusterServiceClass referenced by the instance doesn't exist it will prevent the binding from becoming ready and may impact test results.

Thanks for the details Zhang Cheng.  I believe the issue is the Ansible installer is out of date for RBAC and Admission Controllers (& other things).  It looks to me like that is being fixed here https://github.com/openshift/openshift-ansible/pull/5746/files#diff-f5c4b4675369f72d180a86be3772fe87R44 as part of  https://bugzilla.redhat.com/show_bug.cgi?id=1496694

I have a feeling that 1496694 will address a lot of problems.

Please retest after https://bugzilla.redhat.com/show_bug.cgi?id=1496694  is merged.

I will retry after https://bugzilla.redhat.com/show_bug.cgi?id=1496426 is merged

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://access.redhat.com/errata/RHSA-2017:3188