Hi, from what you describe this isn't something you tune away with setup, it reads like a real defect and I'd raise it with Microsoft support using exactly this repro, the platform and application builds you listed are half the ticket already.
Reordering Policy = Order on an assemble-to-order item is a normal configuration, and the assembly supply is driven from the sales line, so planning generating a second assembly order for demand that's already covered is not what should happen. That is the part that belongs in the ticket, it's not a configuration question.
Until you hear back, filtering that item out of the regenerative run is containment so the mess stops growing, not an explanation. The Inventory Profile error I read the same way, a symptom of planning choking on reservation entries that are already inconsistent, so clean those on a test copy or every run just adds more noise.
Does it reproduce on a fresh sandbox with only that item and no extensions.
Glad to help - follow up if anything is unclear.
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Regards,
Grigorios Mavrogeorgis
Business Central Consultant & AL Developer
Work: Gmsoft Limited
Blog: insidebusinesscentral
LinkedIn: linkedin.com/in/gregorymavrogeorgis