Microbial communities in fluctuating environments can contain many species and diversity within species, both in natural environments such as the human gut, and in laboratory settings when communities are propagated for a long time. Whether this diversity is at the species level, within the species level, or a combination of both, the question remains: what processes lead to the origination and maintenance of this diversity? When nutrient levels fluctuate over time, one possibly relevant process is that different types specialize on low and high nutrient levels. The relevance of this process is supported by observations of types co-existing through this mechanism when put together in the laboratory, and simple models, which show that negative frequency dependence of two types, specialized on low and high resource level, can stabilize coexistence. However, when microbial populations are in an environment for a long time, they will evolve. In this article we determine what happens when species can evolve; whether branching can occur to create diversity and whether evolution will destabilize coexistence. We find that for the trade-off data between growth at low and high substrate concentrations, available for the bacterium Escherichia coli and the yeast Saccharomyces cerevisiae on glucose, there is only a small portion of the trait-space that allows for coexistence. Moreover, this coexistence is destabilized by evolution, and the only evolutionary stable outcome is a single strategy. When we combine two species that are well-adapted on their own, we do find that they can form an evolutionary singular coalition. We conclude that although specialization on resource level can support diversity within a species, it is likely not a cause by itself. In contrast, for species consortia this specialization can lead to evolutionary stable coexistence.