Ahh, I am not sure about that, then. :c I can't seem to find anything relevant in the main menu options or the in-game encounters menu, etc. Maybe instead of disabling, try setting scale to one of the lower percentages? I have mine set to "normal scale" which I imagine is 100% scaling. The lower-percentage options might work? o:
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So I just found how it work. Somehow the game have a system which new generated npc will have level equal or more than player even if the level up system off.
I run some test when I reset my level to 0 the new npc is also 0 but if I have level increased maybe 1000 they also spawn with that amount of level.
And this especially apply for encounter npc in danger zone they will always equal or more level than player.