I'm pretty sure it's something like the anarcho-libs got elected into power normally. At the end of the month after election, they changed the govt form into a presidential dictatorship.
Then, presumably the AI tries to change it's government, sets parties to "all allowed", changes the goverment to democracy after one more month, and that starts a new election. I think maybe the parties to all might take another month to appear.
However, because the anarcho-libs are still in power, they reinstate the presidential dictatorship. So they're constantly in elections, but they never reach completion.
I had this happen recently as Chile. I kept getting the presidential dictatorship in power, and was at a loss as to how to remove it (immigrants were not a fan, nor was the general populace with 100% plurality), until I realized that I first needed to only allow all parties. That shouldn't force a change in government type. Once a month passes, new parties will appear in the list, and you can use your power as presidential dictator to appoint a non-extreme party. With them safely in power, you can change voting rights, start a new election cycle, and you should have your democracy maintained.
I suppose the AI just ain't up to that.
