This is a known issue and is only cosmetic. If you select "Already Added" it will add the User as a new Member to the Group with Temporal Membership.
The following Defect ID has been created to fix this issue in a future release:
VSTS113224: Web Interface check for new member on Temporal Group dialog build always resolves as not new member causing a display issue where it always displays "Already Added" instead of "New".
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