It seems like one of the file will be deleted, sometimes file in destination sometimes file from source. They have the same name but different size and hash.
$ rclone move -P gdrive:unencrypted/tester/recycle-bin/backups/pc01 gdrive:unencrypted/tester/backups/pc01 -vv
2020/11/26 18:52:39 DEBUG : rclone: Version "v1.53.0-beta.4731.725ae9138" starting with parameters ["rclone" "move" "-P" "gdrive:unencrypted/tester/recycle-bin/backups/pc01" "gdrive:unencrypted/tester/backups/pc01" "-vv"]
2020/11/26 18:52:39 DEBUG : Using config file from "/home/ubuntu/.config/rclone/rclone.conf"
2020/11/26 18:52:39 DEBUG : Creating backend with remote "gdrive:unencrypted/tester/recycle-bin/backups/pc01"
2020/11/26 18:52:40 DEBUG : Creating backend with remote "gdrive:unencrypted/tester/backups/pc01"
2020-11-26 18:52:41 DEBUG : Google drive root 'unencrypted/tester/backups/pc01': Using server side directory move
2020-11-26 18:52:41 INFO : Google drive root 'unencrypted/tester/backups/pc01': Server side directory move failed - fallback to file moves: can't copy directory - destination already exists
2020-11-26 18:52:41 DEBUG : Google drive root 'unencrypted/tester/backups/pc01': Waiting for checks to finish
2020-11-26 18:52:41 DEBUG : file1: Sizes differ (src 21 vs dst 15)
2020-11-26 18:52:41 DEBUG : Google drive root 'unencrypted/tester/backups/pc01': Waiting for transfers to finish
2020-11-26 18:52:42 INFO : file1: Deleted
2020-11-26 18:52:43 INFO : file1: Moved (server side)
2020-11-26 18:52:43 INFO : There was nothing to transfer
Transferred: 0 / 0 Bytes, -, 0 Bytes/s, ETA -
Checks: 3 / 3, 100%
Deleted: 1
Renamed: 1
Elapsed time: 4.3s
2020/11/26 18:52:43 INFO :
Transferred: 0 / 0 Bytes, -, 0 Bytes/s, ETA -
Checks: 3 / 3, 100%
Deleted: 1
Renamed: 1
Elapsed time: 4.3s
2020/11/26 18:52:43 DEBUG : 6 go routines active
As you can see it says sizes differ, but it deletes one. Since Google Drive supports multiple files with same name in the same folder, shouldn't it be better if rclone just moves it to the destination and leave it there even if there will be two file with the same name?
Rclone works with a plethora of backends and Google Drive is the only one (maybe one more) that supports duplicate file names which no OS really supports either.
You are correct as it's functioning exactly as it is supposed to as if you move a file, it deletes from the source and copies to the destination and in this case replaces the existing file if it's newer.