Hello @arsam farooq,
Thank you for reaching out to Atlassian Community!
When creating a new Service Project, by default, the customer permission is set to "Customers added by agents and admins", via UI or API, but it happens only on Standard sites.
On Free sites, somehow, all new projects are open to anyone on the site, so after the project is created, it's necessary to go to the Customer permissions and change it.
This issue was reported as a bug:
Please, click on "This affects my team" and also watch to receive updates.
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