The image that im trying to add is a edigital copy and downloadable.
To test this i selected a single digital download/ downloadable image.
The first time i try to add a digital download to cart it is still trying to apply shipping. If i remove the same image from the cart go back into the gallery and add it back to the cart as a downloadable image it then displays correctly with no shipping.
All digital images i add after that do not apply shipping (unless i add a print as that is expected)
If i close out the browser clear cache and start over i can repeat the same behavior each time. So it appears that there is an issue when adding the FIRST digtial copy/downloadable image to the cart.