I'll preface by saying that this feature absolutely should be optional -- Firefox doesn't prevent from creating duplicate bookmarks and users can for instance recreate ones in the toolbar for organization purposes. Clearing duplicates by default would be destructive. I recommend adding a clear warning, similar to the one recommending creating a bookmark backup.
Personally I have loads of redundant duplicates after updating everything to HTTPS, clearing UTM parameters and the Firefox reader mode URLs.
May fit between 'replace domain' and the regex tabs:

I'll preface by saying that this feature absolutely should be optional -- Firefox doesn't prevent from creating duplicate bookmarks and users can for instance recreate ones in the toolbar for organization purposes. Clearing duplicates by default would be destructive. I recommend adding a clear warning, similar to the one recommending creating a bookmark backup.
Personally I have loads of redundant duplicates after updating everything to HTTPS, clearing UTM parameters and the Firefox reader mode URLs.
May fit between 'replace domain' and the regex tabs: