Using the new create issue experience, creating an issue fails when a custom field fails with "Option cannot be selected, it has been locked from assigning to issues"

Issue Summary

Using the new create issue experience, creating an issue fails when a custom field with a specified set of options is set with the following error message:

Option cannot be selected, it has been locked from assigning to issues.

Steps to Reproduce

1. create a custom field using an app
2. define the custom field to be nonSelectable for a subset of projects
3. create a new issue with such custom field
4. click on "Create"

Expected Results

The field validation passes and the issue is created.

Actual Results

Creating the issue fails with the Option cannot be selected, it has been locked from assigning to issues. error message from the validation.

Known impact on apps

This is impacting the Issue templates for Jira app.
For this app, the "Template" field cannot be set when creating a new issue.

Workaround

Currently there is no known workaround for this behavior. A workaround will be added here when available