Pretty sure this is a regression from 1.2.1 to 1.2.2 but I may be wrong on that.
To replicate:
Press command-D or Contact->Add Contact from the menu.
Select the contact type if necessary.
Note that at this point the "Add" button is correctly dimmed - there's not enough information to add a contact.
Press the "Search in address book" button in bottom right of the window.
Select the address book contact, which auto-fills the rest of the window's fields.
At this point there is enough information to add the contact, but the "Add" button is still dimmed. The "Add" button should be activated if the address book search returns all the information necessary to add the contact.
If you use the keyboard to change some information in a field, the "Add" button will become active, but this shouldn't be necessary if the Address book search has already provided enough information.