>>8983181For Knight's Kingdom I, a keychain was released that featured that torso. Which was odd since it was the Lion Knights vs. The Bull Knights for that range of sets. I'm thinking Lion Knights were originally going to be paired against the Wolfpack, but decisions were made later on to change it.
Some of the keychains found their way out into stores, but more-so thousands of unmachined torsos also hit the market. These were printed out of Lego's Hungarian factory and it's most likely they were set to be destroyed and recycled and an employee rather sold them onto the open market. That happened with several minifigure parts that were overproduced; Tusken Raiser torsos, Zam Wesell head/torso combos, unprinted Jango Fett Helmets, etc around the same time period.
Here's the keychain:
https://www.bricklink.com/v2/catalog/catalogitem.page?id=44679#T=S&O={%22iconly%22:0}