Yes that type of thing pops up in chaos.
The chaos program does no decent sanity checks at all. The random selections are all numeric involving the range from zero to the maximum choices. It cant examine or judge the choices based on any criteria. The best it does is that I do kep the choices of troops and bodyguards within a a short range from the initial choice.
So it picks a commander from the full list then adds units and bodyguards from somewhere fairly close to that. All that does is make use of the order that units were added to the game. That way the units MIGHT be at least from the same nation or the same theme (lizard, undead, summons).
As to the provinces you saw, the game does do random ownership of some of the provinces. It picks provinces and randomly adds castle, temple, lab in various combinations and sometimes it randomly gives it an owner. That means that a far province might pop up as being owned/operated by Ermor even if Ermor isnt in the game. On the other hand, sometimes a far province shows up at the start of the game assigned to you. Its also worth noting that other unusual things are the random assignment of unrest and PD. Also that scattered castles have both inside and outside defenders.
Future considerations for adding to the chaos program is more random to the maps (such as colors) such as seen in numbers 31-40 of these map runs.
http://www.dom3minions.com/RandomizedMaps.htm
And possibly some clearing of provinces such as used in the NI maps. And maybe re-ading that scattered castles might start out under siege by a random nation in rare occurances.