Mohamed,
In CRM is actually have some layered validation.
So for this 'allow duplicates' option is kind of first layering.
For example: Contact name must be unique etc.
And this feature is only available if you have the duplicate detection.
You go to Setting, data management, you create a rule for the Duplicate detection.
*You can browse the link about this duplicate detection job, but here I wanna to give you the concept in practice, not theory from link.
So, if you check this option to not allow, but you don't have any duplicate detection rule published, then this option is no use. CRM wont know, what data by what field you want to block duplicate.
That is the first thing.
Another thing, mentioned by me before, if you check this option, you have the duplicate rule, it would be the first gate.
But, CRM also has their own validation, you have your own rule, but you check this as 'allow', then it will also pass to another layer of validation, which is CRM doesn't allow Price List to have same product and unique under same price list.
So example:
You have this data:
Product Name Unit Price Price List
===================================
Donut 1/2 Dozen $50 Basic price list
Donut 1 Dozen $80 Basic price list
Then it will come in because no duplicate data of the second layer.
But, if you enable the duplicate detection, you set:
A price list, in a price list must be unique product name.
So, when you check this to 'not allow duplicate, you will get the error, because...
You have Donut in the same price List, even though the Unit is different, because you set the duplicate detection rules.
So, this option would work if you choose Not allow duplicate.
Second validation is CRM validation, they have their own plugin to validate the gate.
So, now you have this data:
You have this data:
Product Name Unit Price Price List
===================================
Donut 1/2 Dozen $50 Basic price list
Donut 1/2 Dozen $80 Basic price list --> duplicate
You still will have the error eventhough you have no additional rule and you check 'allow duplicates' option.
it is because you have the Product name (Donut) with same Unit (1/2 Dozen) in the same Price list (Basic Price List), there is no rule, but CRM has their own rule before, so you will get the error.
In this case, in your case, to answer your question about " what is the use of the 'allow duplicates' option in the upload wizard if duplicates are not allowed within the same price list? " so I would say that this is having no use in your case.
Hope this helps you.
Thanks.