Using 'sf create agent' always creating a Service agent instead of Employee agent.

[vc4u]

I'm unable to create an Employee type agent using sf cli.

A simple script that should create me an Employee Agent:

$Alias  = 'agent-repro'
$DevHub = 'My-DevHub'

sf org delete scratch --target-org $Alias --no-prompt

sf org create scratch --definition-file config/agentforce-scratch-def.json --alias $Alias --duration-days 1 --set-default --target-dev-hub $DevHub --wait 20

sf org assign permset --target-org $Alias --name CopilotSalesforceAdmin --name EinsteinGPTPromptTemplateManager

sf agent generate agent-spec --target-org $Alias --type internal --company-name "Test Company" --company-description "A company that tests Salesforce CLI agent creation." --role "Answer employee questions about internal test records." --max-topics 1 --output-file specs/internalAgentSpec.yaml --force-overwrite

sf agent create --target-org $Alias --name "Internal Test Agent" --api-name Internal_Test_Agent --spec specs/internalAgentSpec.yaml --json

My SFDX Config:

{
  "orgName": "Agent Create Repro",
  "edition": "Developer",
  "features": [
    "EnableSetPasswordInApi",
    "Einstein1AIPlatform"
  ],
  "settings": {
    "lightningExperienceSettings": {
      "enableS1DesktopEnabled": true
    },
    "mobileSettings": {
      "enableS1EncryptedStoragePref2": false
    },
    "agentPlatformSettings": {
      "enableAgentPlatform": true
    },
    "einsteinGptSettings": {
      "enableEinsteinGptPlatform": true
    }
  }
}

But this end up creating a Service Agent always.
<agentType>EinsteinServiceAgent</agentType>

I'm running out of ideas on why it is not creating an Employee Agent. Can anyone help me understand what am I missing here?