Problem with using the Create Lines From process on the Material Receipt window

1) Access to demo.idempiere Log in to Client = Garden World, Role = Garden World Admin
2) select "Fertilizer" record in "Warehouse & Locators" window and inactivate all Locator for this warehouse

Now

3) Open the Material Receipt window. Create new record with Organization = Fertilizer ,Warehouse = Fertilizer
3) Click on the Create Lines From button. On the Warehouse Locators window > Drop Ship Warehouse record, I will see a new locator record that is automatically created when opening the Create Lines From pop-up view. Can you please take a look and identify why the system is automatically creating a new locator record for the Drop Ship Warehouse?
Before clicking on the Create Lines From button on MR, the Drop Ship Warehouse has a default locator record. So, the Locator field of the Create Lines From pop-up view is supposed to set this locator as default.
4) On the Create Lines From pop-up view, select any from the Purchase Order drop down list.

The following error:
Database Error.: ERROR: duplicate key value violates unique constraint "m_location_where"