No it's normal if the Vin has been
Listed on the national database. Seems like it was probably a statutory write of or similar from insurance. What can happen is people buy a wrecked car at auctions for the vin- Be it stat or economic write off then use that Vin on a stolen or repaired car. Used to be was only recorded in that state but now as the national data based are merged to stop these cars being sold interstate,it may be a case of this.

That's why they want your records, to see where it came from and trace the sale to point of origin.if the car is one of these reshell, it can be scraped by law, leaving your friend with a civil duspute with the seller in some cares or with the person that originally re registered the car.

It's messy.