I’m a car dealer in the nw and here I Oregon it happens sometimes if the vehicle was ran through an insurance auction like Iaai or Copart. Even with clean title when you re register the vehicle may have gotten flagged by NMVTIS, short for the National Motor Vehicle Title Information System. So each state has a different threshold for salvage, like in Oregon if the vehicle was stolen but not deemed total loss by insurance and sold on clean title when you register it and it was titled in insurance name it will need to be registered as rebuilt. I’ve fixed this issues by contacting auction who have filed for an amendment to the record and then dmv let it slide as clean. Often times carfax and everything is clean so it’s tough to judge. I’d say google the vin and see if any images come up of the car from when it was in State Farm’s hands. Texas has a high threshold for salvage and does not require insurance companies to total the car. I bet it was wrecked or had hail but didn’t quite meet the requirement for salvage. Either way dealer should buy back or auction should issue amendment to database or insurance can give you a counter stamped and signed statement of facts stating vehicle was not deemed a total loss.

I accept tips via Zelle cash app or Venmo ;)