Yes, I knew the rule and I implemented it correctly. When you take a person and all your palaces are full you can see a special link, "Discad person just taken", and I'm 100% sure that if you click that link you don't advance on the person track.
But you have also the option to place the person into a palace replacing another person previously acquired, and in this case you do advance on the person track. And this is waht happened in your game: the player took a farmer and placed it into a palace replacing another farmer previously acquired. Look at the game log: the first farmer was taken during setup, the second one was taken during the person phase of round 9 and replaced the first.
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