diff --git a/packages/rulesets/generated/spectral/az-arm.js b/packages/rulesets/generated/spectral/az-arm.js
index 890e6c6b4..f4a47a603 100644
--- a/packages/rulesets/generated/spectral/az-arm.js
+++ b/packages/rulesets/generated/spectral/az-arm.js
@@ -3159,7 +3159,7 @@ const ruleset = {
             message: "{{description}}",
             disableForTypeSpec: true,
             disableForTypeSpecReason: "Covered by TSP's '@azure-tools/typespec-azure-resource-manager/no-record' rule.",
-            resolved: true,
+            resolved: false,
             formats: [oas2],
             given: "$.definitions..[?(@property !== 'tags' && @property !== 'delegatedResources' && @property !== 'userAssignedIdentities' && @ && @.additionalProperties)]",
             then: {
diff --git a/packages/rulesets/package.json b/packages/rulesets/package.json
index c141b5bbe..ba96f1b78 100644
--- a/packages/rulesets/package.json
+++ b/packages/rulesets/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@microsoft.azure/openapi-validator-rulesets",
-  "version": "2.0.6",
+  "version": "2.0.7",
   "description": "Azure OpenAPI Validator",
   "main": "dist/index.js",
   "scripts": {
diff --git a/packages/rulesets/src/spectral/az-arm.ts b/packages/rulesets/src/spectral/az-arm.ts
index 1fefae6aa..0a1a2239a 100644
--- a/packages/rulesets/src/spectral/az-arm.ts
+++ b/packages/rulesets/src/spectral/az-arm.ts
@@ -299,7 +299,8 @@ const ruleset: any = {
       message: "{{description}}",
       disableForTypeSpec: true,
       disableForTypeSpecReason: "Covered by TSP's '@azure-tools/typespec-azure-resource-manager/no-record' rule.",
-      resolved: true,
+      // Only report errors at the source, not from inside $refs (the resolved document)
+      resolved: false,
       formats: [oas2],
       // In some cases, variable "@" will be "null" when evaluating the expression, so it must be checked before dereferencing
       given:
diff --git a/packages/rulesets/src/spectral/test/avoid-additional-properties.test.ts b/packages/rulesets/src/spectral/test/avoid-additional-properties.test.ts
index d213d0bbe..5be6f5372 100644
--- a/packages/rulesets/src/spectral/test/avoid-additional-properties.test.ts
+++ b/packages/rulesets/src/spectral/test/avoid-additional-properties.test.ts
@@ -143,6 +143,12 @@ test("AvoidAdditionalProperties should find errors", () => {
         },
         required: ["type"],
       },
+      ThisRef: {
+        description: "Ensure error is NOT raised from inside $refs (rule sets resolved:false)",
+        properties: {
+          $ref: "#/definitions/This",
+        },
+      },
     },
   }
   return linter.run(oasDoc).then((results) => {