Italian planning preferred a limited war with France

Was Italy planning to fight France while avoiding a larger naval war with Britain?

Yes; Italy's preferred scenario was a limited war against France in which Britain stayed out, because British intervention placed Italy in serious difficulty.

Italy's favorable case was a localized contest with France rather than unrestricted control of the Mediterranean. Italian planners wanted to exploit a manageable regional balance without adding the Royal Navy's ships and global resources to the enemy coalition. British intervention would widen the operational area, strain Italian fuel and replacement capacity, and expose the fleet to a stronger opponent. This narrow preferred scenario reveals the limits of Italian resources and planning.