There is an option for services (other than dynamic inclusion) to influence the overall alarm state of a service. When using this option, the service does not include alarms from this element in its overall alarm state shown in the surveyor and the element is set to "not used".
However, other than this, the alarm still has a service impact and likewise gets returned when active alarms from this service are requested.
It is like the only thing that this option does is "hide" the service alarm state in the surveyor and nothing else.
Is this by design? Because I would expect an alarm that "does not influence" also "doesn't have an impact"
This is by design. Capping of a service element alarm severity has no effect on the service impact field of alarms generated by that service element.