Transfer Order is Auto Pick Confirms Part of Transfer Order when Pick Confirmation is Required

Summary:

We have setup our Inventory Organization such that Pick Confirmation is required. The Pick Wave Release Rule has Auto Confirm Picks unchecked.

We have 2 items - one is serial controlled and one is not.

We create an interorg Transfer Order with the two items on the transfer. Create the Pick Wave. Expectation is that we have to pick confirm both items - which is what we want to do.

The Transfer Order auto confirms the non-serial control item and makes me pick confirm the serial controlled item.

Is there any other setting that would override the Pick Confirmation required? I am at a loss as to how to stop the auto confirm of my pick for any non-serial controlled item.