LTI user synchronisation setting is not clear

With a 3.1.1 provider site I am unable to successfully disable user synchronisation. The tooltip for this setting states "Whether an account is created for each remote user and the user is enrolled in this course", however when this is set to 'No' the account is still created when the LTI consumer accesses the site.

The provider site is version 3.1.1 and the consumer site is 3.0.5.

Steps to replicate

1. Setup an LTI tool enrolment type in a course
2. Set Grade synchronisation to 'Yes'
3. Set Require course or activity completion prior to grade synchronisation to 'No'
4. Set User synchronisation to 'No'
5. Leave User synchronisation mode as 'Enrol new and unenrol missing users'
6. Setup an LTI activity on 3.0.5 site and access the provider course as a student
7. Check Browse list of users on the 3.1.1 provider site and see if the user has been created