API Wrongly Assigning Zoom Phone License and Extension

We have an API set up from Salesforce to create Zoom Users and to upgrade and downgrade user licenses. The concern is that users are getting Zoom Phone licenses and extensions assigned even though we have the setting turned off to auto-assign extensions.

How can we stop assigning a phone license and extension?

Zoom User Creation Payload Sample Detail:

{ “action”:“create”,

   "user_info":{

                       "first_name":"John",

                       "last_name":"Smith",

                       "email":"john.smith@test.com",

                       "type":"2"    //Basic => 1, Licensed => 2, On-prem => 3 

                  }

}