This is from a VIDEO_TS folder, I take it. If you do a rip from a disc using MTR, of main feature only, this happens frequently. It is better to do a full disc extraction and then only burn the main feature from within Toast. Even then, I recommend you burn an image first, because sometimes what Toast reports as the main feature is not the main feature at all.
Once you have a VIDEO_TS folder that Toast likes, you will be able to deselect fit to DVD.