Disregard I found a way by editing the config.xml. Seems like it's not exposed in the UI for some stupid ass reason.

If anyone else needs to do this, first thing I did is set this in my config.xml

<DefaultMovieMinimumAvailability>Released</DefaultMovieMinimumAvailability>

Then I bulk updated the radarr.db file

sqlite3 /var/lib/radarr/radarr.db

UPDATE Movies SET MinimumAvailability = 'released';

Validated it updated all my movies:

SELECT COUNT(*) FROM Movies WHERE MinimumAvailability = 'released';

.exit

restarted radarr

That sounds like an ombi issue, as I understand it the minimum availability is only a per-movie setting and can't be set globally so you'll need to figure out why ombi isn't setting it correctly when adding to radarr. Unfortunately I can't offer any tips for ombi because I use overseerr