Item currently unavailable not displayed for anonymous user

As administrator, when I view my registration enabled product I can see:

"No slots available
This item is currently unavailable."

when there are no more slots available. For anonymous user, it just shows the "add to cart" button. This is for a display with only one product w/o options, so falls into the "hidden" display.

I can get the proper expected results "No slots avialable" listing if I change line: in commerce_registration.module, line 357

case "hidden":
        $product = commerce_product_load($form['product_id']['#value']);
        $settings = registration_entity_settings('commerce_product', $form['product_id']['#value']);
        if (commerce_registration_product_has_registration_field($product->product_id)
            && !empty($settings)
            //COMMENT OUT THIS LINE && registration_status('commerce_product', $form['product_id']['#value'], TRUE)
            && registration_register_page_access('commerce_product', $product)) {  

Not sure if this is a bug or if I have a permissions set incorrectly.