Generate Sub Assemblies IN Error: The Inventory Item is a template item

Hello all,
We are running 2023R1 manufacturing and we are trying to Generate Orders for Sub Assemblies from assembly Inventory ID’s, but we are coming up multiple instances of this same error.

AM Error: The following error occurred when the system tried to copy the BOM: Error: An error occurred during processing of the field Inventory ID value 32369-20030 IN Error: The inventory item is a template item.

Highlighted is just one of multiple Inventory ID that this error could occur on.  We do not have any templates in our system and none of the Inventory ID are template items.  Actually Matrix Items is not enabled in our system.
When we look at the BOM for say this inventory ID 32369-20030 it shows a warning that 32369-20030-1 is a template item, but again this is not a template. (see image attached)
When we open the stock item screen for the assembly with the warning (32369-20030-1) add a space to the description, save the stock item the warning goes away.
But this does not hold and we just move onto the next part or assembly in the BOM to cause a “The inventory item is a template item” error.
We have this logged via our support partner, but we are literally stopped so any thoughts would be greatly appreciated.