git pull --rebase does not tolerate any modified files at all, contrary to git pull --no-rebase

Question

Please, observe:

C:\xyz\55 [release/r-855 ↓1 +0 ~16 -0 !]> git pull --rebase
error: cannot pull with rebase: You have unstaged changes.
error: please commit or stash them.
C:\xyz\55 [release/r-855 ↓1 +0 ~16 -0 !]> git pull --no-rebase
From http://server.xyz.com:8080/tfs/defaultcollection/code/_git/xyz
 * [new branch]          wfm/tfs485759 -> origin/wfm/tfs485759
Updating 5f010c356..871eb9ca2
Fast-forward
 .../PayrollService/DAL/Payroll/PayRunDataProviderDAL.cs            | 7 ++++++-
 1 file changed, 6 insertions(+), 1 deletion(-)
C:\xyz\55 [release/r-855 ≡ +0 ~16 -0 !]>

My conclusion is that git pull --rebase does not tolerate any modified files at all. This is unlike git pull --no-rebase, which is OK as long as none of the modified files clash with the new commits.

This kinda sucks.

Is my conclusion correct? Or can git pull --rebase be configured to behave more like --no-rebase when it comes to modified files?