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It knows the neck area can’t be the same between front and back, but it doesn’t know if it should sample the skin or cloth textures to fill the gap, so it just takes a blend of both.

I guess, by hedging this way, it managed to improve its evaluation score without having to learn how clothes actually work.

It's definitely not perfect, but I'd argue that it is better than a "blurry front paste". For example, it doesn't place breasts on the back. Also, for the polo shirt example the model is doing significantly better than copying the v-line of the front of the shirt and shows a round collar. I think it is pretty impressive and one could argue the model has somewhat learned what a human looks like from the back given the clothing of the front, even though it is quite blurry.

Great observation