Issue with consolidation transfer

We have the following setup in our Oracle R12 environment:

The profile option GL Consolidation: Exclude Journal Category During Transfer is set to Yes at the Site level.

We have some categories marked with Yes in column Consolidation_Flag in table GL_JE_CATEGORIES.

We're running transaction consolidation transfer between two ledgers.

We now create the following two journals with category and Consolidation_Flag indicated:

Journal Name        Category                Consolidation_Flag

test journal BB      GIB FA ADJUST     No

test journal CC      GIB MRI                  null

We only expect test journal CC to transfer to the target ledger.  But for whatever reason, both journals are being transferred and this is causing a issue for us.