Actaully, it may be a totally valid control scheme. Notwithstanding the need for additional info to be sure, this looks to be like the kind of system I have employed on pumping and refrigeration systems.
The VFD is used to load-match the system using motor #1 only. Then when it gets to 100% speed, the inherent full-speed running losses in the VFD are avoided by switching on the motor #2 at full speed, usually Across-the-Line or with a soft starter of some sort. Once it is at speed, motor #1 is switched off ASAP to avoid a load surge (I usually tailor a decel ramp on motor #1 to match the accel of motor #2). Then if the load demand continues to increase, motor #1 is added back in with the VFD to match the increasing load demand again.
The reason this is done with separate controllers instead of just bypassing the VFD with a contactor is because the nature of the load might make it problematic (or impossible with that VFD mfgr) to perform a "synchronous transfer" from the VFD to contactor bypass. If the motor slows even a fraction, you will generate a huge transfer spike and may damage something. I know of only one VFD mfgr that has proven they can do a synchronous transfer successfully, although several have said it can be done in theory. By bringing on motor #2 (which needed to be there anyway) X-Line and then turning off motor #1, the potential spike problems are avoided without a complicated and/or expensive addition to the VFD.
His system may not have experienced sifficient load demand above the capacity of one motor for him to have witnessed the 1st motor coming back on through the VFD.
"Venditori de oleum-vipera non vigere excordis populi"