Hey, looks like this is the same issue as in your previous thread: Unable to turn off the team rules while it’s not been compulsory.
The team is aware of this bug. Thanks for the extra info about disabledTeamRules in state.vscdb. That’s helpful and it confirms the issue is on the runtime side, not the UI. I’ve also noted the Request ID.
I’ll update the original thread when there’s news. Closing this one as a duplicate, let’s continue in the original thread.