Though reported to have been fixed, the issue with fairies randomly showing up at homes outside Innisgreen even with the box limiting them to Innisgreen being checked is still prevalent.
Even after the update, I've already had several of them show up uninvited and unnanounced at a Sim's home at the Oakenstead lot (Willow Creek, Sage Estates). I'm playing on the Xbox Series X (no mods, no cc). I've done a full restart and cleared the cache since the update. I even accounted for the possibility that the first couple of unwanted fairy visits might have been already queued up at the time of the update, but even one in-game week later, fairies are still knocking at the door.
The only difference regarding this issue that I've noticed since the update is that they're no longer showing up in fairy form. They're still showing up regardless, and that's annoying enough. I don't care what form they're in. Fairy form or not, I want them to stop knocking on my door.
Look, if I can make a recommendation, forget trying to fix this setting again. Just get rid of the behavior altogether. There wouldn't even be a setting to fix in the first place if the fairies simply behaved like everyone else. Whatever mechanic fairies have attached to them that makes them go door to door, just get rid of it. It never made any sense in the first place. If a player actually wants their non-fairy Sims to interact with fairies, all they need to do is visit Innisgreen. It's not hard. If, for some reason, a player would like to have fairies roaming through their Sim's neighborhood, that's what the Fairy Passage lot trait is for.
It doesn't even make sense that they'd be making random house visits in Innisgreen for that matter. There's only three neighborhoods there and one of them is basically fairy central anyway (Everdew), while another, The Coast of Adhmor, is the last place fairies ought to be roaming around. It's explicit in Innisgreen's own lore that fairies are not welcome there. Being spotted using fairy abilities in The Coast of Adhmor will get a fairy in trouble with the fairy council. So, by having fairies making random house visits there too, the game's mechanics are completely at odds with the game's own lore.
Just get rid of this behavior entirely please.