Unlucky that there's no configuration option for the Capacity responsible Planner Group in Public Cloud Edition until current version 2402. SSCCUI 102761 is for planner group of task list, not for capacity.
Please first check the PO quantity is taken as the available Qty or not. If the PO Qty is not taken as the available Qty, then MRP will generate new supply.
Hi SARATH KS,To check the authorization, you may find the business catalog of the app you used (Seems it is Display Production Order) in SAP Fiori App Library. And check the Restriction Type of catalog in app Business Catalogs.