Helly,
It's normal for treated larch lap or larch feather edged fence boards to be sold unseasoned, as it's easier and cheaper for a mill to pressure treat green timber than dry timber. This has to do with science stuff, cell wall hardness and things.
Fence boards will never go in a kiln to be dried, as they dry out very quickly once they are fixed anyway because they are so thin and kiln drying is a costly process, so they are always supplied unseasoned. Panels may look like they have been dried, but this is because the timber components have been hanging around long enough for them to air dry before they are made up into finished panels and sold on.
The problem with your fence is that whoever fixed the boards hasn't allowed enough overlap to accommodate the shrinkage.
A middle rail will help align the boards and strengthen the fence, but will not do anything about the lack of overlap.