Password policies use password validators to check the quality of a new password. New passwords are also checked to see if they are the same as previous passwords used by the end-user (history checks), but this is a separate validation step and independent of the password validators. Therefore the password quality advice control only includes advice for password validators, not password history checks.
This issue can be closed once password quality advice includes advice for history checks. This may be achieved by re-implementing password history checking as a hidden password validator - hidden because it's configuration is managed directly within the password policy itself, not as a separate password validator component.