How to setup OAuth to use default settings when new user logs in Community Edition

We have set up GitLab Community Edition in our organization. We have enabled OAuth2 with Google, using the Contacts and Google+ APIs.

When a new user accesses our GitLab instance, they are allowed in without any problems, however, they cannot create any projects - the user account needs to be updated by the Admin account.

We have the Application Settings (in the Admin area) set to 10 Default Projects and the ability to create groups. However, the new user does not use these settings.

How do we get the new users using OAuth2 to use those defaults so there is no Admin intervention?

Here is the document we followed:
https://docs.gitlab.com/ce/integration/omniauth.html#initial-omniauth-configuration

Here is the gitlab.rb settings on our server:

gitlab_rails['omniauth_auto_sign_in_with_provider'] = 'google_oauth2'
gitlab_rails['omniauth_block_auto_created_users'] = false
gitlab_rails['omniauth_auto_link_ldap_user'] = false
# gitlab_rails['omniauth_auto_link_saml_user'] = false
gitlab_rails['omniauth_external_providers'] = ['google_oauth2']
gitlab_rails['omniauth_providers'] = [
  {
    "name" => "google_oauth2",
    "app_id" => "(Google App ID)",
    "app_secret" => "(Google App Secret",
    "args" => { "access_type" => "offline", "approval_prompt" => "" }
  }
]

Is there a config setting we are missing?

Try to remove:

gitlab_rails['omniauth_external_providers'] = ['google_oauth2']

It might be conflicting https://docs.gitlab.com/ce/integration/omniauth.html#configure-omniauth-providers-as-external.