I know I’m late but I had that same issue with finding out how to demolish roads (I ended up looking it up). Ironically my most recent obsession with it, where I sunk 30 hours in a week, is also my 2nd time giving the game a chance.
I think my initial complaint was the controls for playing with a controller. Coming back to it with keyboard and mouse was great. If you have any questions let me know, sometimes you gotta set it down and come back to it.
Demolish roads is a small red button below the row of buildings. You should see the roads button that looks like a bunch of lines, and to the right of it should be the small red demolish roads button.