Hi ,
If you specify GENERATED ALWAYS, this problem will not come, but the draw back would be u cant insert directly into the field with identity value. U need to do a load replace.
If u have replication, GENERATED ALWAYS will not work.
In GENERATED BY DEFAULT both inserts with values and replication will work. But my doubt is if u dont give default and do the insert, it would take the next value automatically. Please try this, remove the default and remove the identity column name.
It will start putting identity values from database.
Let me know if it solved ur problem