Env variable doesn't get applied to default organization

I have an issue: I have applied this env variable in the compose file of zitadel --> ZITADEL_DEFAULTINSTANCE_LOGINPOLICY_ALLOWREGISTER: false. To exclude any "influence" of other files I just have in the command: "start-from-setup --config /secrets.yaml --masterkey ${MASTER_KEY} --tlsMode external" where secrets.yaml only contains username for DB. But as you can see in the screenshot, it is still set to true. I am onkly using the default organization called Zitadel, so I think this env variable applies to default organization, right?