Me and others in my department used to be able to uncheck the "create new folder for this project" box when creating an ArcGIS Pro project from a template. After upgrading to 3.1 a couple of weeks ago, the box is now grayed out. Those of us who upgraded to 3.1 do not have the option to uncheck the box, but it still works fine for everyone on 3.0.
There is an open idea for this feature, but I think it is a bug in 3.1 (Allow the "Create new folder for this project" box to be unchecked when creating a new project from a custom project template.)
Example of box being grayed out:

Thanks in advance for any ideas.
EDIT: I have tried changing settings related to creating folders under Options > General > Create projects but it did not make a difference.