That's highly unusual behavior for a Cavalier. It must be the way he was raised. The breed in general (including mine) is very social and open to meeting other dogs and people. He isn't, however, super playful with other dogs, except with a few select buddies. He is usually quite tolerant of puppies tumbling all over him, more so than adult dogs doing the same thing. He knows the difference.
As for playing with other dogs, my Cavalier loves to "rassle" with his neighborhood buddy and you'd think they are fighting to listen to them, but it's just play. The main thing is to
always ask first the other dog owners about their dogs before allowing any interaction. If both are on the leash, you can let them greet each other by touching noses and sniffing. You can always pull them apart if they seem too aggressive. Be prepared for leashes getting all tangled up... what I call the "leash dance."
Bottom line, unless the other dog is known to be aggressive, let them tumble and roughhouse. The socialization is good for your puppy.