How to copy notes and keep the copied note in key?


In bar 3 I wanted to copy the note E by holding alt and dragging down with my mouse. The note I wanted was C but Cubase only gives me a B#. I now have to manually overide this. I have no idea why this is the case. If I hold alt and drag a note and copy the note this way shouldn’t the score editor know that C is the key signature and not give me a B#. I would think that if I am in C, which I am, then only diatonic notes should appear as possible options when copying using alt and dragging. Is this a setting somewhere? I sure would like to only see diatonic notes when dragging or at least understand why cubase is giving me a B#

I even have this selected. i thought this was the setting I needed but it still gives me B#
Screenshot 2024-08-29 at 18.00.05