bug#3607: 23.0.94; odd character in fringe.el

I don't claim this is a bug, but perhaps someone could take a look to
be sure.
 
In fringe.el, I see this text: Pavel Jan=c3=adk. The next-to-last
character shows in my Emacs with face `escape-glyph'. This is what
`C-u C-x =' shows:
 
        character: =ad (173, #o255, #xad)
preferred charset: iso-8859-1 (Latin-1 (ISO/IEC 8859-1))
       code point: 0xAD
           syntax: _  which means: symbol
         category: b:Arabic, h:Korean, j:Japanese, l:Latin
      buffer code: #xC2 #xAD
        file code: #xAD (encoded by coding system iso-latin-1-unix)
          display: by this font (glyph code)
    uniscribe:-outline-Courier
New-normal-normal-normal-mono-13-*-*-*-c-*-iso8859-1 (#x10)
   hardcoded face: escape-glyph
 
Character code properties: customize what to show
  name: SOFT HYPHEN
  general-category: Cf (Other, Format)
 
There are text properties here:
  charset              iso-8859-1
  face                 font-lock-comment-face
  fontified            t
 
Is this something weird, or is it OK? Since I have customized face
`escape-glyph', I notice this easily, but it is not really noticeable
in emacs -Q. Why would a soft hyphen character be displayed using face
`escape-glyph'?
 
BTW, when trying to send this, Emacs asks if I want to convert
non-ASCII chars to hexadecimal. Dunno which would be more helpful, so
I'll guess yes. The *Help* text quoted should give enough info,
anyway.
 
 
 
In GNU Emacs 23.0.94.1 (i386-mingw-nt5.1.2600)
 of 2009-05-24 on SOFT-MJASON
Windowing system distributor `Microsoft Corp.', version 5.1.2600
configured using `configure --with-gcc (3.4)'