its$ for now but when things like this happen it usually means it will be free soon
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open the steam website and paste this into the address bar instead (javascript: will disappear, you need to retype it)
javascript:AddFreeLicense(893476)
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I didn't have any differences when activating this license, compared to before the UI change.
Perhaps you mistook the authorization prompt (do you wish to open in client?*) with the activation prompt (added to library! install/dismiss*), thereby dismissing the activation by accident? [* Exact prompt phrasing may differ. :P]
Otherwise, we gotta assume it's a random bug from the new UI, same as how webhelper will now randomly take over my entire system memory (ie, memory leaking) until client crashes itself. -.-;
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Thanks for checking(人Θ'o)
After all, the license is added when you complete to Install work.
Also, the new UI seems to have more buttons to remove licenses obtained free from Library. (In addition to the hidden one, an additional one has been added.)
Perhaps the behavior in this area has changed a bit...
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They did change it so that it doesn't show in my recent games, in the Home area, when I add a new license (or at least, this particular one), but the prompt and process was exactly the same as before for me, other than some unimportant visual changes. With Steam, inconsistency between experiences is a normal thing, but it does at least tell us any differences you're having aren't likely supposed to be happening.
For me, before and after, the process is (activate through SteamDB or URL bar), get the (do you want to open to Steam) prompt, confirm the prompt, get the (your produced is activated, install?) prompt, and dismiss.
That said, I do remember a period a few years ago where I did need to click Install on some activations (though I forget the context), and I remember that all I had to do then was just cancel the install at that step (ie, before any actual installation began). So if you haven't tried that, that's a consideration. Beyond that, sorry, that's the full scope of my experiences, past and present, as far as the install prompt goes.
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https://bleedingcool.com/games/monster-racing-league-has-become-free-to-play-on-steam/
edit: after looking on the Store i can see why the BASE game is F2P because most of the game is behind dlc
https://store.steampowered.com/dlc/2210800/Monster_Racing_League/
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not all of them some contain other playable characters
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https://steamdb.info/app/2210800
steam://install/2210800
click in install
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