One question is, if someone is doing elaborate deceptive work like this, gets hired and has no problems performing the job, does it actually matter? Some people mostly or entirely code at work, so this looks like a legitimate way to get a "good" project in GitHub that he knew well. It sucks that it's deceptive (which could be a major red flag), but it's also clear enough that he understood a large codebase well enough to explain it and modify and/or refactor it, which is honestly the majority of a SWE job. A lot of people are concerned about the "purity" of how someone solves an interview challenge, and outside of potential ethical red flags, people that "cheat" the system are often putting in a lot of work, and are as likely as anyone else to be capable of doing the work.
No if they had no problems performing on the job then no it's not an issue. Maybe they learned and this provided a good reset for them. Maybe they didn't and similar issues will crop up.
I put the anecdote up as a real-world example of one way the GGP's github reference can be faked.
You would have to dig really hard into their knowledge of the system to catch them, which you wouldn't have time to do.
For instance, I believe the issues would show up in a benchmark.