Making SGPortable optional still creates the SGPortable folder on removable media

I have a removable media policy like this:

Media Encryption Mode: File based

General Settings

- Algorithm to be used for encryption: AES256

- Key to be used for encryption: Defined Key on list

- Defined key for encryption: <selected key>

File Based Settings

- Initial encryption of all files: Yes

- User may cancel initial encryption: Yes

- User is allowed to access unencrypted files: Yes

- User may decrypt files: Yes

- User may define a media passphrase for device: Yes

- Copy SafeGuard Portable to target: yes

- Plaintext Folder: <folder name>

- User is allowed to decide about encryption: Yes, remember user settings

It works as I want it to with one small issue, if the user opts not to encrypt the media an empty SGPortable folder is still created on the media.  Is this something I can fix or is this a software bug?