This sounds like a bug, not some kind of coverup. Google makes mistakes and it's worth discussing issues like this, but calling this a "coverup" does a disservice to truly serious issues.
Remember that "thought process" is just a metaphor that we use to describe what's happening. Under the hood, the "thought process" is just a response from the LLM that isn't shown to the user. It's not where the LLM's "conscience" or "consciousness" lives; and it's just as much of a bullshit generator as the rest of the reply.
Strange, but I can't say that it's "damning" in any conventional sense of the word.