Redwood UX Duplicate checker is not showing

With the release of 26B, we were trying to test out the Duplicate checker functionality for Redwood UX. In the documentation it said there was no setup required (see text included below). However, when we create leads with known account/contact names it does not provide any potentional matches.

We are not using this in Fusion UI either. Is this related to the Redwood configuration requirements?

"Accounts, Contacts Duplicate Checker

Duplicate Checker gives Sales Users an intelligent checkpoint at the moment they create a new lead. You start as usual on the Create Lead page, enter or pick a contact name such as John Smith using the contact picker, and select or create an account such as My Favorite Accounts on the lead form. When you click Create, the system automatically checks for similar accounts and contacts. If matches are found, an alert appears stating: "Similar accounts or contacts found". You can review existing records or continue creating the lead with the entered information. From here, you can click Review