Even trying to do it via CLI it does the same. Originally it didn't even show that vsys1 was an available vsys after the settings default-vsys command until I tried to enter it once (which it didn't complain about). Compare to running config does not show any change to 'settings'. You cannot force commit the change either.
admin@M100-01(primary-active)# set template TEMPLATE1 settings default-vsys vsys1
Commit job 54836 is in progress. Use Ctrl+C to return to command prompt
template -> TEMPLATE1 is missing 'settings'
template is invalid
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