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Multiple OnPremise LCS Project

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I am working with a client that already have an existing OnPremise LCS project. Due to internal company organization, they need to create another instance of the OnPremise implementation project. In LCS, when they click add.. select "Finance and Operation"... then it automatically ask you for info for a Cloud Implementation questions... They did not have an option to select "On-premises implementation". 
 
The user is a ORG Admin. If this is a licensing issue, what licensing changes are needed?
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