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I remember being told the a lot of the first VCRs were like that (both JVC and Panasonic).
I think the idea was for it to operate similar to an audio cassette deck from a component stereo system. The tuner being pushed through end-to-end without record or audio dub would have been the unusual bit.
I guess it was decided pretty quickly that it was just easier to show whatever you were going to record regardless if any of the buttons were pressed.
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