You could be right. If you look at the old code, dsa_gen_k(), that was removed during the commit (https://git.tartarus.org/?p=simon/putty.git;a=commitdiff;h=c...), it does basically no bounds checking, presumably because at the time it was written it was assumed that all modulus values would be many fewer bits than the size of a SHA-512 output.

So it would have been pretty easy to just reuse the function for a modulus value that was too big without encountering any errors. And the old code was written 15+ years before it was used for P-521, so it's entirely possible the developer forgot the limitations of the dsa_gen_k() function. So maybe there's another lesson here about bounds checking inputs and outputs even if they don't apply to anything you're currently doing.