All USA states and territories showing even though zone excludes them

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I have set shipping zones to specific US states (just continental only), and we are using Multi Carrier label app. In both Shopify and in the app we have set the zones to only include continental US states, however ALL US states and territories are showing up. With all the issues we have had with the platform. Is there some secret voodoo that requires this to work right. We are stumped.