Team Calendar : Don't notify space or page watchers option doesn't apply

Problem

Team Calendar : When we check option , "Don't notify space or page watchers"
it should Only send calendar notifications to people who are directly watching a calendar.
But it also sends notification to space watchers, even though those users are not calendar watcher.

Environment

• Confluence 7.9.0 (Build: 8505)
• Team Calendar Version:7.0.7

Steps to Reproduce

1. Create two users on confluence U1 and U2.
2. Create a Space using user U1
3. U1 is admin user , Create team calendar from U1, add new calendar (using TC macro) to a page in the Space
4. Login via U2 and go to Calendar and check it is not watching calendar (which should be in place already as we didn't specifically watched from user U2)
5. Go to Space and make U1 and U2 as watchers
6. Create an Event in the calendar using U1

Expected Results

User U2 should not get notification, as option "Don't notify space or page watchers" has been checked

Actual Results

User U2 gets notification, even though he is just an space watcher and not calendar

Workaround

NA

Notes

SMTP configuration should be in place , so that Confluence is able to send notification.