Project Budgetary Controls are getting called when the project is not enabled for budgetary controls

The capital projects are enabled for budgetary controls only. We have unit tested the capital projects and budgetary controls are working as expected. However, the billable projects are not enabled for budgetary control. When imported costs from Cost Management, the costs on project HLP10036 are failing to import due to budgetary controls.

My understand of budgetary controls is that it can be enabled for Projects only. And at the project-level, we can decide if budgetary controls are needed. I’ve configured the project template and financial plan type without budgetary controls. Is this correct? It appears that budgetary controls are enabled for all projects?