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The automation for assigning generals hires them automatically. The thing is, it doesn't do this off of need. It does it by just checking the number of mercenary characters against a formula. Meaning that even if you don't need them, it will just hire them infinitely, using army and navy tradition to do so.
Basically, unless you also disable the hiring automation (which frankly, I would encourage, it is terrible and serves no purpose), you'll get caught in an infinite loop where the AI keeps hiring more and more mercenaries you don't need only to get them instantly culled.