Storyline 360 creating a launcher file when not selected

HI,

 

In Storyline 360, having an issue where I publish my storyline 360 file to scorm 1.2 and a launcher.html file is created and put in my zip file even though the settings in the player to launch in a separate window is deselected. Anyone else run in to this issue? Do you know why it's happening and how to stop it? Our client's LMS won't function due to this launcher. 

Thanks,

  Lori