You need to raise the quota or make unlimited for the groups those users are in.
Sorry, I disagree. Raising the quota is what that setting is for. It is not designed as a per-album quota it is for the entire MG. If you want them to upload you'll need to raise it.
Thats could be a deal , unfortunately this will take ages. And I think @MtoR can fix this within days as he mentioned already.Sounds like you should suggest album storage settings over on XF, as this add-on is working as intended.
I just made it up lol. I am saying that's what you want.
I could see this useful for admins that do not allow certain groups to upload to the gallery at all, and this lets them enter photo contests. You could give them access to upload but 0mb in storage and they could still enter photo contests with the bypass setting. Anyway, you have and edge case here, so good luck with your suggestion.