Default View Password Permission disallowed (inherited)

So I'm trying to change the default view password permission for my vault, but the option is greyed out and it says its inherited. But from where?! Because in the system settings, default is allowed for view password. See my screenshots below.

I'm so confused. And right now unless I make a user an Administrator they can't see the passwords. I would like to change the default to allow and then set customs for certain passwords like global admins etc.