IMHO, they colluded with Nifong and displayed prejudice and a lack of professionalism.
While I agree with you 110%, in principle: the Special prosecutor's assigned duty, re: this specific report, was not to investigate the Durham PD; but, rather, to explain the "whys" behind the (long overdue, IMHO) dropping of charges against Seligmann, et. al.
The Durham PD should most certainly be conducting an Internal Investigation into the photo line-up procedures used in this case. Their officers absolutely used improper line-up procedures. They violated their own departmental policies and every training guideline I've ever heard of regarding presentation of a line-up.
I would call the process they used "shooting fish in a barrel." Who did they think she would pick out of such a suggestive line-up?
Of course, it will be a “personnel matter” and not be disclosed unless ordered by a court order.