So apparently if you get press keys from the developers or you have super large wishlists the functionality to remove items you own is lost. So even if you manually change the wishlist on gg on update everything comes back. Steam acknowledges the issue but does not give any resolution. I do not think they care about the issue.
This causes a big problem as I am getting lots of notifications about games I have, and yes I have bought on-sale items that I already own.. Steam does not seem to stop you if you were given a press key or if you got it through curator connect.