How to configure Cloudfront for API Gateway with API key enabled?

I configured two API Gateways one with API-key enabled and the other with API-key disabled.

For both the API gateways I configured and enabled CloudFront.

For the API-gateway which has API-key disabled, the request is served from CloudFront.

However, for the API-gateway which has API-key enabled the request is always served from the origin. In the response from API-gateway with API-key enabled, the 'X-Cache' header always comes with the value RefreshHit from CloudFront.

Is this how it will work?

Can I not enable CDN for API gateways with API key?