I have Etsy Ads turned on but I only advertise a select few listings so I am careful to scroll to the bottom of each new listing and make sure the Etsy Ads are turned off before I publish.
So far I have published two new listings using the new listing experience. Both times I checked that Etsy Ads were turned off at the bottom of the page (a black circle with a black cross to the right) but both times the new listings were activated in my advertised listings after I published. When I subsequently edited the listings, the Etsy Ads at the bottom of the page showed turned on (a white check mark (tick) with a white circle to the right).
Please be aware if you use Etsy Ads.
I have reported the problem to Etsy via live chat and am now awaiting an email.
Just a quick update. I have not received the promised email from Etsy that I was hoping to attach my step by step screen shots to.
I have started listing new items in my shop so I turned off Etsy Ads for fear of not checking one & being charged for clicks I did not anticipate. So I will not be able to report if this glitch is fixed or not.