diff --git a/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/ConfirmationModal.tsx b/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/ConfirmationModal.tsx
index c82da38f9..2d4e77d1b 100644
--- a/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/ConfirmationModal.tsx
+++ b/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/ConfirmationModal.tsx
@@ -21,7 +21,7 @@ const ConfirmationModal: FC<ConfirmationModalProps> = (props) => {
   const { isOpen, onClose, governanceId } = props;
   const { notify } = useNotification();
   const {
-    values: { advancedSettings },
+    values: { advancedSettings, initialAdvancedSettings },
   } = useFormikContext<IntermediateCreateProjectPayload>();
   const [isUpdatePreviewLoading, setIsUpdatePreviewLoading] = useState(true);
   const [isCirclesUpdateLoading, setIsCirclesUpdateLoading] = useState(false);
@@ -40,7 +40,12 @@ const ConfirmationModal: FC<ConfirmationModalProps> = (props) => {
     try {
       setIsCirclesUpdateLoading(true);
       await GovernanceService.updateCircles(
-        generatePreviewPayload(governanceId, permissionGovernanceId, circles),
+        generatePreviewPayload(
+          governanceId,
+          permissionGovernanceId,
+          circles,
+          initialAdvancedSettings?.circles,
+        ),
       );
       notify("Changes are successfully applied");
     } catch (err) {
diff --git a/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/utils/generatePreviewPayload.ts b/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/utils/generatePreviewPayload.ts
index 4fe8eb843..3cc7d9cff 100644
--- a/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/utils/generatePreviewPayload.ts
+++ b/src/shared/components/Form/Formik/AdvancedSettings/components/ConfirmationModal/utils/generatePreviewPayload.ts
@@ -8,6 +8,7 @@ export const generatePreviewPayload = (
   governanceId: string,
   permissionGovernanceId: string,
   circles: InheritedCircleIntermediate[],
+  initialCircles: InheritedCircleIntermediate[] = [],
 ): PreviewCirclesUpdatePayload => {
   const circlesForPayload: PreviewCirclesUpdateCircles[] = circles
     .filter((circle) => circle.selected)
@@ -17,9 +18,12 @@ export const generatePreviewPayload = (
       }
 
       const { inheritFrom } = circle;
+      const isExistingCircle = initialCircles.some(
+        (initialCircle) => initialCircle.circleId === circle.circleId,
+      );
 
       return {
-        type: "existing",
+        type: isExistingCircle ? "existing" : "new",
         circleId: circle.circleId,
         ...(circle.synced &&
           inheritFrom?.governanceId &&