Project form doesn't inherit parent group's visibility settings

Summary

Creating a new repo within a group that has internal visibility should have only the private or internal vis option available.

Steps to reproduce

1. Create a group with any visibility other than public.
2. Create a new repo within the restricted group, click create the group using the pre-set visibility options.
3. Look for error.

What is the current bug behavior?

Using the preselected defaults the user is alerted that the repo cannot be created because the visibility is less restrictive than the owner.

What is the expected correct behavior?

The repo is created with the least restrictive visibility of its owner by default.