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Are you sure the giftt went through?
Exactly the gifting option is not accessible if they already have it or maybe it was a different version.
The giftee needs to initiate the refund as they accepted the gift.
is it possible last year you gifted them the base game, and this time you gifted them the Deluxe, Gold, or Ultimate edition?
i think sometimes selecting an "upgraded" version of a game someone already has will still end up letting you gift it to them. i think that makes refunding difficult because Steam won't refund what they consider "Consumed" DLC... and the Deluxe, Gold, or Ultimate versions of the game might have bits of the DLC that Steam considers "consumed". Like in-game currency or perks that have already been applied/unlocked by your friend accepting the gift.