I don't recall making or seeing this suggestion so far (searching the community).
We have had this happen a few times in the past, and just recently it happened twice within a week by two different users. The default import type for manual imports is update AND create products. Which can be a big problem, I would imagine. Maybe some customers may want this as a default, but my suggestion is to err on the side of protection from accidentally creating new products when they should not be created.
Make the default value "Update only existing products" in the list.
If this is not wanted for some reason, then I would suggest that you add a confirmation message box for the "Allow both to..." and "Only create..." options that are selected. Where the message could read:
"The Import Type is set to create new products. OK to proceed?"
Now the user will have one last opportunity to catch a potential mistake in their Import Type selection.

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Can the development team add this to an existing sprint or next project sprint? I have had this be a problem three times in the past month alone. And while it is ultimately up to the user to ensure they are selecting the proper choice from the list, Pimberly should be making the UI as easy to use and foolproof for customers as possible.
Request #21368 was entered as an enhancement review OVER a year ago (June 2nd, 2025)! This is an incredibly easy change to set the default value in a list. Maybe 5 minutes of total dev work.
Please make this a priority for the next update release.
Thank you.