I think you'd be surprised how lax IPC-A-610 can be. That probably just sneaks in as acceptable for class 1/2 (side overhang <=50%). Even class 3 acceptance criteria allows for 25% overhang.

They probably gave the marketing department a QC reject to take pictures with, since marketing can't be bothered to worry about things like proper ESD protection =)

I would be shocked if they didn't ship that. The capacitor is electrically connected to the pads, and isn't shorting the row of smaller passives above. It's $32.

Whoa— yeah, that’s hard to un-see. I can’t believe they missed that (and that I did at first glance)

What's the issue with this ?

It just looks ugly. A slightly larger misalignment could cause shorts on pads above, which would impair the device function, but if it isn't, it isn't.