"According to the following article, the badges were Fairlane badges, and the Mustang featured in the Motor Trend article (August 1964) wore them because the Mustang badges were not ready yet. "
+1
Yes,
I remembered the 1964 Motor Trend article as well right after I wrote this thread-this morning...and I even have the issue. They were on the 64 1/2 HiPo "Test Mule" car. You're 100% correct..and your pic is from that article that MM nicely re-printed.
I agree, They are probably early '64 Fairlane.
)
Tony K.
PS: As for the paintjob on the car, It's just perspective! The paint on the car was rather nice with some limited orange peel..