Steps to Follow

Open your File Explorer
Locate ProgramData folder -   C:\ProgramData\Wilcom\EmbroideryStudio\e4\DEFAULTS
Delete the old defaults.dfl file from C:\ProgramData\Wilcom\EmbroideryStudio\e4\DEFAULTS. 
Then you will then be able to create up to 8 sequins per device in the palette editor.

For the Sequin, our Sequin palette editor has included this change -  Up to 8 sequins per device can be specified. 

Set number of sequins per device. Sequin devices are normally attached to the first or last needle on the machine head. Sometimes both. (There may be multiple heads on the machine.)

Please refer to the attached release notes [page 23] .

The machine capabilities should be checked first.  "The Sequin Palette Editor lets you prepare a palette of sequins for use in your design according to your machine capabilities. Sequin devices are normally attached to the first or last needle on the machine head. Sometimes both. Set number of sequins per device. Up to 8 sequins can be specified. Set colors and size for each sequin, as well as sequin hole size. Colors can be defined for both front and reverse sides. Once set up, the palette is available for use from the Sequin Palette droplist." 

Note - Up to 8 sequins can be supported when the Dahao machine format is selected.

Creating multi-sequin design has been specified from page 31 of the Sequin Supplement