Hey NElk,
Great question! Yes, it does duplicate the transaction when you create the Spend Money option. Since you're not spotting your payroll transactions when you're trying to match it in the Bank Feed window, chances are it's already been ticked off in a previous reconciliation, or it's marked as checked in the Reconcile Accounts window. No worries though— you'll just need to undo the previous reconciliation where that payroll transactions was included, and untick those transactions. Once that's done, it should pop up as expected when you're matching in Bank Feeds. You can also check this link for more info.
Cheers,
Doreen