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I wouldn't consider it "bad title".
As I said, the title is supposed to match the vehicle frame. What body is bolted on the frame doesn't matter. 1646594 does indeed translate to an early 1958. More precisely, built in August 1957, for the 1958 model year.
Somewhere along the line, somebody removed the 1958 body and replaced it with a 1964 body. As far as legality, nothing was done wrong, unless the 1964 body is off of a stolen car, and a body switch was done to try and disguise it. Possible. But as much as bodies were swapped on these cars for various reasons (excess rust, newer features, etc) it's probably harmless.
As an example, a company called Beetle Mex used to take older frames (say a 1969) and remove every component, except the pan (frame) they would then recondition it and install all new parts, including the body from a new Mexican Beetle. The title reflected a 1969 VW, but the car was in essence a brand new 2002, or whatever year they took the new parts off of. This was to get around the US safety and emission standards which prevented new Mexican beetles from being imported into the US. Perfectly legal.
My suggestion is to check with the local Motor Vehicle Department or the local Police and have them run the body VIN just to be sure. If it comes up clean, you're set to go.
If it comes up stolen, You may or may not lose it, but they will want to know any history you might have on the car. (where you got it, etc).
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