Area permissions not inheriting correctly from Page Type defaults

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I'm having issues setting area permissions on a new page type. The idea is users will be able to create a new page based on the page type but only be able to add specific blocks to the pre-defined areas on the page.

I've setup the new page type and set the appropriate permissions for each page area but when I come to add a new page of this type, the permissions for the areas aren't there and users can add any block they like.

I have outlined below the process I'm following incase I'm missing anything.

1. Add new page type by going to Pages & Themes > Page Types > Add Page Type.
2. Select the Output option next to the new page type
3. Select Edit next to the page template (Note, I only attached one template to this page type)
4. Add a 1 column layout by clicking on the page templates content area and selecting Add layout.
5. Once the area is created, click on this area and select permissions. Select override permissions and then choose "Add Block to Area"
6. On the Details tab, then select which block type to restrict to and save changes

This all saves correctly and the settings are there whenever I go back to edit the output however when I add a new page of this page type the area permissions don't seem to be filtering down.

I found a similar issue from several years ago but there's no clear update as to whether this is a bug -https://www.concrete5.org/community/forums/customizing_c5/overriding...

Any help on this would be much appreciated