This can happen if you add a reference qualifier on the reference field from screenshot 1

For Eg, if you add the ref qual the state = new then the list you will see (screenshot 2) will be a filtered list with the filter state=new applied, and if you click on NEW button there then the same filter condition will be applied to the record and state will be pre selected as new.

Im not sure if you want the filtered list or not.

Hope this helps.