I have had two issues. Glass pane was broken by a player, and in the time it took for the glass pane to register it shouldn't be broken, same player was able to interact with the armorstand behind the glass. They were able to remove an item from the armorstand. I have not allowed any exceptions (Party, Allies, Everyone), and have not changed the exceptions for player plots in the default config.

In addition to this, items in item frames can be removed with an empty hand, an item in the hand, and by arrow.

This isn't actually true. You either have actually configured your claim protection wrong (the most likely option) or it's a compatibility issue with another mod. Or you're using a very old version of the mod.

Am I just not understanding how this works? I have both armorstand and itemframe interactions off, which should prevent them from interacting?

Also, I think my version is relatively new, as I'm on 1.20.1:

I also don't think any other mod is interfering and have not seen any compatibility lists, so not sure where to start looking.

Also, to be clear, they can't break the itemframes or armor stands themselves, just take items off them.

Can you interact with your item frames in non-ally-mode?

Do /openpac-claims non-ally-mode and check if you yourself can interact with your own item frames and armour stands.
Also send me a screenshot of your sub-configs (open the dropdown menu that currently says "main").

I am starting to lean more towards it being a compatibility issue though.

At this point I've given up. My cognative function can't handle this right now, so I've temporarily deleted the mod until I can think clearly enough to figure out what is going on.