Duplicated strmlnks (Via Gracenote) are appearing twice in the collection. I was under the impression that these should be combined with the option of which one to play. Am I missing something?
No, similar content is not collapsed. This is on the roadmap though.
What you are referring to is the ability to get the multiple options. In the Apple TV app, you can click and hold the Watch button to get these options.
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Do I understand correctly that even in the Apple TV I will currently see both items in the library but will have the option to play the alternate version by holding down the WATCH button?
yes