QB Issue Resolution:

To merge classes they need to be on the same level. Start by editing the subclass to no longer be a sub of the parent. Then edit its name to be the same as the one you wish to merge into.

Resolution for Issue 'is there a way to merge a class sub-account into the class account? In other words, I do not need the sub-account, but can’t delete it because it has activity' available: Yes (Solved).
Source: Intuit Community forum.

is there a way to merge a class sub-account into the class account? In other words, I do not need the sub-account, but can’t delete it because it has activity: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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