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I didn't think it was legal to swap out...

Makes no difference what it says on the lower. It can be marked 5.56 and you can put a 7.62x39 upper on it if you want. Nothing illegal about it. Again if it starts out life as a pistol lower it can be swapped to rifle and back at will. If it starts out life as a rifle lower it must always remain a rifle lower.

This. The caliber marking is just that, a marking. What matters is what it was listed as by the manufacturer when it was first transferred. "Other" or "Pistol", it can be a pistol. "Rifle" and it's always a rifle.
 
It is legal. They are basically selling a pistol with an extra stock and upper. Nothing illegal about it. (As long as the lower started out as a pistol lower).
And when I say "started out as a pistol lower" I mean the first time it was built it was built as a pistol. That is what determines whether it is a pistol or rifle. If first completed as a pistol it will always be a pistol lower and can be swapped back and forth as often as possible. If first completed as a rifle it can only ever be a rifle. It really makes no difference what an FFL transferred it as. Unless the manufacturer registered it as a rifle lower when they serialized it, you can build it either way. An FFL does not have the authority to change the classification of a weapon unless they are also the manufacturer and they actually assigned the serial number.
 
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