#7562 made version 2 transactions standard, which should have broken the test in bip68-sequence.py that version 2 transactions are non-standard before BIP 68 activation. However, there was a syntax error in the test case, so it didn’t break.
In fact, it’s fine for version 2 transactions to be standard before BIP 68 activation since BIP 68 was activated in July 2016, so it’d have to be a pretty big re-org to go back to pre-activated times (and even then this is a non-consensus change).
Best fix here is to remove the test that version 2 transactions are non-standard prior to BIP68 activation.