Feature branch build fails when "Disable Building in Default Branch" option is checked

Upgraded to 2017.1 to take advantage of the ability to "Disable Building in Default Branch" as advertise here . But when this box is checked building feature branches start failing because TeamCity is unable to "Unable to collect changes". Here is an example log:

[22:32:41]TeamCity server version is 2017.1 (build 46533)
[22:32:41]Finalize build settings
[22:32:42]The build is removed from the queue to be prepared for the start
[22:32:42]Collecting changes in 2 VCS roots (10s)
[22:32:42][Collecting changes in 2 VCS roots] VCS Root details
[22:32:42][VCS Root details] "teamcity-settings" {instance id=22, parent internal id=13, parent id=TeamcitySettings, description: "git@bitbucket.org:ZZZ/teamcity-settings.git#refs/heads/master"}
[22:32:42][VCS Root details] "feat" {instance id=62, parent internal id=24, parent id=ZZZ_Feat, description: "https://bitbucket.org/ZZZ/ZZZ#refs/heads/develop"}
[22:32:52][Collecting changes in 2 VCS roots] Detecting changes in VCS root 'teamcity-settings' (used in 'ZZZ', 'buildDocs' and 16 other configurations)
[22:32:52][Collecting changes in 2 VCS roots] Will collect changes for 'teamcity-settings' starting from revision ZZZ
[22:32:52][Collecting changes in 2 VCS roots] VCS revisions for 'teamcity-settings' - 1333ef26534668dcbe611bf4789d561cb66bc664..beae4cb8c74040140c9bf334857e086f1a933397
[22:32:52][Collecting changes in 2 VCS roots] Processing combined checkout rule for 'teamcity-settings'
[22:32:52][Collecting changes in 2 VCS roots] Done collecting changes for 'teamcity-settings': 1 changes collected 1 changes persisted, total time: 29ms, persisting time: 23ms
[22:32:52]Failed to collect changes, error: Builds in default branch are disabled in build configuration
[22:32:52]Failed to collect changes, error: Builds in default branch are disabled in build configuration
[22:32:52]Build finished (edited)