I'm pretty sure this is not an intended behavior, but I want to make sure.
When I try to add a second address of the same location type I get an error and civi will not let me (Image 1).
If I use the merge tool and I try to merge contact A (Image 2) with contact B (Image 3), I am told moving/merging the home address to the home address of the destination contact will cause an overwrite (Image 4).
In the merge tool I see no conflicts even though contacts have home addresses that differ (Image 5). If I use the [Batch Merge All Duplicates] button I end up with 1 contact with 2 different address records of the same type (Image 6). Same issue with email addresses, although civi will let me add two email addresses of dame location type (which I don't think should happen).
Bug?
*note, this was tested on civi demo site.