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@adroit
A mild steel hanger from a sub £100 mtb has been fixed with a screw to the old dropout and is held in place by the rear wheel.
It's a bodge, and certainly not "fundamentally OK"
As Dammit says, there is no way of knowing how this came about, but my guess would a crash. The dropout on a 1992 Klein is not only a thing of beauty, it is a thing of great strength. To break it takes a lot, so I would suspect that the dropout is likely to be out of alignment too, but I speculate.
If I were to buy a Klein frame of that vintage I would want to know it had been in the hands of someone who knew how to look after good bikes, not how to bodge them.