No,the adverb already is not a contracted use of the phrase all ready.
All ready = everything that needed to be done is completed.
I was all ready to go to the club when I saw a pimple the size of Mount Rushmore on my forehead.
Already = something has happened in the past.
At my age, I thought I was already done with acne breakouts.
Not the same. Not interchangeable. So stop using them as such.