There have been guns demilled by crushing in the past few years. Right now Apex is selling AK and AR receivers that were handled this way, in quantity. The kits have been selling for a while. Plenty of polish PPS-43s have come in recently as well, with saw cuts that had sections discarded. Demil isn't done only one way or with one tool, it's whatever the ATF permits or demands, and then lets come out of bond. Sometimes they change their mind, as has been seen with Maxim, PPSH-41 and Uzi kits. Torch cutting seems to be the most common method, I agree.
I don't like the cuts on this kit because it looks like the whole receiver is there. Were one of the center pieces trashed, I think it would pass some of the recently approved destruction standards. On the other hand, as another poster has stated, the Chauchat is an unusual gun. The ATF may require different things to be cut, and I've seen opinions vary on the topic, so it's something that I can't speak on with any authority.