Line Manager is unable to rehire a contingent worker

Hi Experts,

We are currently an facing an issue in below scenario:

1. Contingent Worker is terminated in past date (example: 01st July'24)
2. Line Manager is looking to rehire the same person as 'Contingent Worker' via My Team > Quick Actions > Add Contingent Worker
3. When he enters first & last name > system brings up the existing record and when he selects the existing inactive record and clicks continue

There is an error on the screen. Attached screenshot for your review and advise. Please can some share your thoughts if you have come across this scenario before and how to handle this error.

Thanks much!