Or... really crappy installation... that someone accepted a substandard 'fix' for... that failed because it wasn't done right.
It's not far-fetched to imagine a company don't crap work also has people that would approve and accept substandard fixes. Fixes that could be applied before customer acceptance... combined with a customer who is too apathetic for their own good and doesn't actually oversee the job.
It's a 40+ year old building... how many retrofits and have been made in that space that probably didn't include complete material replacement? Retrofit a fixture onto an existing wall..
Bob: "oh look this one's finish surface is 1" shorter than the last one.. "
Bill: "close enough.. the gap will be covered by the finish tile..." or "screw it
Joe: "man, look at this crappy plumbing job... now look at this hack I gotta do to cover that.."
Sam on walk-through: "do all the fixtures work? good enough for me..."
Standards only work if the people apply them and don't accept substandard stuff. It's not like hidden hacks are anything new in the industry.
The caulk job in that thing is a mess anyway. Way too big and already separating from the toilet and not just in that one spot. Clearly its trying to cover up some other inferior job behind it. If it was tilework or wallboard that wasn't replaced fully or a toilet not mounted well vs the finish surface. Looks hacky across the board.
No one would go back through and add finish and crap caulk to make their peephole look like authentic construction slop