I have heard recently that dogs, coyotes, and wolves have started inbreeding.
That could definitely cause some confusion about what it is.
However, that picture looks to me like just a dog in really, really rough condition.
Coy-dogs and wolf-dogs are not new at all. Been around for years. You can even purchase wolf-dogs with varying percentages of wolf.
Yup. It is not that uncommon anymore.
They call them coydogs round abouts.