One of the problems is that folks tend to bring in wild animals from other places (illegally) and use them for road-side displays or whatever for tourists. Sometimes these animals escape, sometimes they do what they're supposed to do... survive, which is by any means necessary, including reproduction. It is quite possible that wild dogs of Africa (which are a totally separate species of canine may have been transported here to the states some time ago (before there was a crack down on this sort of thing), gotten loose and inbred with American coyotes... thus producing the odd look. Inbreeding also causes mutations among same species.
Coyotes were hunted mercilessly and in some places there are still bounties for them... especially in ranching sheep country. It shouldn't be surprising that this one is the result of that inbreeding between siblings because the population isn't genetically diverse enough to maintain a healthy gene pool.
Just an armchair zoologist's theory. :idunno: