Why are project leaders able to see other project hours on the timesheet?
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There are many projects and all of them have associated project leaders. The approval path is set up in such a way that when the user submits a timesheet, it should go to the appropriate project leader. However, when a user enters time for many projects and submits the timesheet, all the project leaders are able to see the time entered against all the projects.
This happens when the project leader permission associated to the users have a 'View All' sub permission enabled for the permission called 'Approvals' on the timesheet time information category. Disabling this sub permission resolves this issue.