When supplying the [item=engine-unit] signal to a foundry^, with the config option "Press engines" disabled, it then uses what I assume is a Silly Recipe: "Casting engine unit for the lazy ones" (vgal-lava-engine-unit)
Unfortunately, I can't really provide a fix for this. Currently, when a recipe group isn't enabled (like the silly recipes in this case) the recipe gets hidden, not removed. While you should not be able to see it, the signal can still select it. Making it so instead of hiding the recipe, it never gets added would break this mod and other mods depending on it.
Unlike Vanilla Galore Continued, there is no option under Space Age Galore config to disable Silly Recipes. I would ask that this be included.
The Vanilla Galore options should also work for the Space Age Galore recipes. Can you still see the silly "lava -> engine" recipe when picking recipes while silly recipes are disabled? (If so, that's a bug.)
Perhaps a future update down the line for both Space Age Galore and Vanilla Galore could include a comma-seperated text input in the mod config [...]
Why didn't I think of this...
I'll add it in the next update XD
(Although this will not fix your issue as this will also hide recipes, removing them would break things...)
Thanks for the bugreport/suggestion :D