server side world spawn fails with custom server properties

The problem is it is not spawning you within 20 blocks, it ends up being in the hundreds. Like 200 blocks away. Here is an example of the difference I experienced. Spawn point set to -159 70 479, final resting spot -87 73 364. Alot more than a few blocks. When I created a fresh server world with default server properties, it works just fine. Only with this setup does it fail. The only thing I can think is the spawn protection setting. I have it set to 150 instead of 10. But I cant imagine that would effect were people spawn. Or at least it should not.