I believe this was a miss-configuration:
The client is in the Dev/rhel7_capsule_cv lifecycle and content view. The custom product in question (capsule6_latest) only has 1 repo. That repo is not in the Content View Version that is in Dev/rhel7_capsule_cv. It is however in Library/rhel7_capsule_cv, so my guess is that Version 7.0 of rhel7_capsule_cv just needs to be promoted to Dev.
I think this is NOTABUG.
It looks like Justin is right, that this is just a mis-configuration.
I've attached a couple of screenshots showing that the capsule is indeed
in the Dev LE and then the contents of the latest content view version
aligned to the Dev LE. As a result, I am fine with closing this out as
notabug.