Saving file with same name no longer requests 'Keep Both' or 'Replace'

I have a new MacBook Pro with Monterey.

When saving files to the desktop, that have the same name, I no longer get warned about a duplicate file name and whether I want to skip, replace (same file name, delete old file) or keep both (in which case it used to append a (1) or something.

For example. I save a screenshot to desktop. Run it through a compressor and resave it. Instead of asking whether I want to rename it, it now just saved a second file with exactly the same file name.

It has always done this on this new Macbook.