Just a guess but I'm going to wager that you have a GPO that is unchecking the overwrite option. To test this, go to a machine and check the option. Then force a GP update using gpupdate /force
from an elevated command prompt. Give it a minute or two to update and then go check the option again. If it was reset then a GPO option is doing it. GP policies can be based upon the OS so it is possible the policy was different for Win10 than for Win11.
To work around this I would go into GPO and enable overwriting for all computers. You can see a screenshot of this option here.