Is this working as intended? I didn't know this could happen with a CN.
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It doesn't really make sense with CNs though and it's not a colonial region, it's just odd.
That's because CN have the exploration casus belli, and often use it on Gold Mines provinces, like the AI would do on you if you were a native. They should limit it to Colonial Areas and Natives/Rival colonizer lands.
I found in my current 1.22 game that my CNs didn't spam claims all over every TC province they collectively could find so I assumed that was decided to be a bug and fixed.
As to that, it's the Expansion finisher they are using, not Explo. Ironically that allows them to claim anything in TC land but doesn't give them the ability to claim anything in Colonial Areas. Perhaps CNs should take Exploration instead of Expansion, although that might be OP. Then again, Expansion needs a buff anyway.