Hi Chad,
I think this is expected. See the document here: https://doc.laserfiche.com/laserfiche.documentation/11/administration/en-us/Default.htm#../Subsystems/Forms/Content/Rules.htm
Save the data when the field is hidden: Select this option to retain the data in the field. For example, a form has two shown Number fields and one hidden Number field. The form designer wants to retain the sum of the two shown Number fields in a hidden Number field and then save the result in the hidden Number field. In this case, the form designer would select this option to save the data. Because the field data is saved, the software still checks that the field is configured correctly when the form is being validated for configuration errors.
If you would like the field to be saved and ignore the required status on Forms 11 or later, you may use the new form designer and use field rule to set field as not required on condition.
While on 10.4.5 you may turn off backend validation.