From what I see it is just an informational field. If you create a service management project for your IT Team, just choose IT in the dropdown menu.
I tested by creating an IT Service Management project and choosing the HR team as Team type and id didn't change anything. The template you use will determine the settings of your project.
Hope this helps
Have a nice day
Frederic Chartrand
FMX Solutions - Gold Solution Partner
Actually I think that Team Type field is related to request types attached to your project.
In fact i chose Business Team and I found Business Request Types in my project by default.
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