I have MOBs selected OFF. An annoying MOB still spawns. He has a chest on his back and a light to the right of his face. How can I get rid of him?

I think it's called the Merchant. I turned off all MOB spawning months ago. After a recent upgrade, a MOB is being generated often that walks around with a chest and boxes and lamps hanging off of him. It's not the trader. Shouldn't selecting MOB spawning off prevent this?