Yep, that used to be the case but it has changed. Are you trying to associate with an Illumin bulb? You can force that to pair non-secure, so the intent is to allow it to pair with a ZWAVE_S2_FAILED dimmer.
An older workaround used to be to get the device as far away as possible from the hub, but I’m not sure if that’s a valid workaround any longer.