Create configuration error while using create configuration item by Model

Hi -

We are in CTO environment, wherein we are planning to update 'create configuration item by Model' attribute at ATO item definition, so that CID gets generated at all inventory orgs where ATO item is defined.

We are seeing a issue in case of existing CID's i.e.

INV ORG1, INV ORG2 has CID due to prior orders, After turning on the attribute at ATO item level,

when we create order for the same configuration CID now in other org, say INV ORG3...we notice that create configuration program is failing with ERROR. Can you please confirm:

a) Does Create configuration by Model needs to be set for brand new Model and not for existing Model?