What you are seeing here is the kind of bureaucratic error on LSAC's part. For a small number of questions, the question was originally released to the public, then later found to be flawed, and so it was then pulled from circulation. However, when LSAC went to make digital tests on Lawhub, they apparently used the original
source files and so these questions have begun reappearing. Hence, your ability to see it
The problem is, we know these questions are flawed, and so it's a futile effort to both do these questions and to try to explain them. After all, they were pulled for a reason! So, our official policy is to not explain them, as it's basically impossible to do so given the fatal flaws present. Your best move is to throw it out and not worry about it. Annoying I know, but this is a question that you shouldn't be seeing on the test in the first place.