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No, it looks like that option is not available for a fictional league. I think the game would become very confused if all the players were fictional and you asked OOTP to block fictional players from reaching the majors.
It sounds like the AI is signing fictional players from your free agent pool. Maybe you should go through all of those players and delete them. Once that happens, then you could create players as needed and control the process. But just make sure that the game isn't going to create a fictional draft class or otherwise do any future player creation on its own.
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