Try it now. Wikipublisher can interpret floating images in various ways.
By default, all images float, rather than, as in this case, have text wrap around them. This is because if a document mixes floating and wrapping images, the figure numbers can get out of sequence (figure 1 floated may print after figure 2 wrapped).
So Wikipublisher interprets left and right floats (%lfloat% and %rfloat%) as images with side captions. This is the behaviour shown originally in the example page.
What if an author wants to wrap text around a figure? We make use of %lframe% and %rframe% styles *and* let the author turn wrapping on and off with a print metadata option. With wrapfloat=on (as shown on the example page), lframe wraps around the inside margin and rframe wraps around the outside margin. This produces mirrored even and odd pages. It also lets outside margin images span the margin space (as in the example). If duplex is off, lframe goes to the left margin and rframe goes to the right margin on every page.
An author can mix [lr]float and [lr]frame, but there is a risk that figure numbers will be out of sequence. When wrapfloat=off (the default) [lr]float and [lr]frame produce the same output.
So the short answer is, not broken, works as designed, but perhaps not as expected.
Hope this helps,