Duplicate check does not work at all from custom profile when adding contact

I have 3.1.4 installed but I also duplicated this bug on the demo site which not sure what it is running (3.1.??) ...

To RECREATE on demo site:
I created a custom profile and I used only these settings (if I don't mention a setting or field then I did not change it at all):
Name: test
Used for: Profile
Active: yes
No Account Creation Option selected
Update contact on a duplicate match checked

Then for fields I added:
Firstname (required)
Lastname (required)
Phone
Email
I made all four Active and Visibility: User and User Admin Only

Now under Find and Merge Duplicate Contacts setup a DEFAULT STRICT INDIVIDUAL dedupe rule with ONLY Phone as the criteria (weight 10) and threshold of 10.

Now go to profile and use the Use Profile Create Mode
Leave email blank and enter:
Firstname: andrew
Lastname: adams
Phone: 62949260

Now do a search on contacts for adams. If andrew adams is only in there once, then try again from Use Profile Create Mode and you will tehn see it keeps adding duplicate entries even though the phone is an exact match.