Steps to reproduce the issue

Open User Options and verify that send passwords is OFF
Create a new user, add them to the Admin group Managers
Check the user inbox for New User Details email and you will find the email with the PW sent in plain text.

Create a second account, do not assign the user to the admin group Managers
No email is sent, as expected.

Expected result

No email with a password should be sent with the Send Password setting OFF

Actual result

Email is sent when the new user is part of an Admin group such as Managers or Administrators

System information (as much as possible)

Joomla 5.2.6
PHP 8.3.20
IIS Server

Additional comments

This is a fairly serious issue. Please advise.