Your’re right, that project shouldn’t appear on anyone’s timesheet.
I suggest you double-check that the project has ALL tasks closed to update. The UI for this feature can trick you.
If your project has a large number of tasks, they are displayed in a series of pages (see the page control at the bottom of the list). Choosing Select All” ONLY SELECTS THE TASKS ON THE DISPLAYED PAGE.
You have to choose Select All for each page of tasks, and then click the Publish button.