Fix project Visibility level selector not using default values

app/views/projects/new.html.haml

@@ -90,7 +90,8 @@
           = f.label :visibility_level, class: 'label-light' do
             Visibility Level
             = link_to "(?)", help_page_path("public_access/public_access")
-          = render('shared/visibility_radios', model_method: :visibility_level, form: f, selected_level: @project.visibility_level, form_model: @project)
+          = render 'shared/visibility_level', f: f, visibility_level: default_project_visibility, can_change_visibility_level: true, form_model: @project
+
 
         = f.submit 'Create project', class: "btn btn-create project-submit", tabindex: 4
         = link_to 'Cancel', dashboard_projects_path, class: 'btn btn-cancel'

changelogs/unreleased/issue_20245.yml

+---
+title: Fix project Visibility Level selector not using default values
+merge_request:
+author:

spec/features/projects/new_project_spec.rb

+require "spec_helper"
+
+feature "New project", feature: true do
+  context "Visibility level selector" do
+    let(:user) { create(:admin) }
+
+    before { login_as(user) }
+
+    Gitlab::VisibilityLevel.options.each do |key, level|
+      it "sets selector to #{key}" do
+        stub_application_setting(default_project_visibility: level)
+
+        visit new_project_path
+
+        expect(find_field("project_visibility_level_#{level}")).to be_checked
+      end
+    end
+  end
+end