This might be because the builtin version is the same as the one in elpa (although if that's the case the UI is somewhat confusing) but I'm not sure about that because I don't quite understand the relationship between builtin versions and stable external releases. I mean, is builtin org only updated to match external releases or does it follow a different cadence? Does a strict number version match between builtin and external implies exactly the same org revision? And in this case, is it expected that package.el doesn't offer org as a valid installation target nor prepends org's local path to the builtin one?
Best regards, Carlos