I'm likely missing something obvious but I'll ask anyway out of curiosity. How is this not handled by the well understood chemical gradient mechanisms covered in introductory texts on this topic? Essentially cells orient themselves within multiple overlapping chemical gradients. Those gradients are constructed iteratively, exhibiting increasingly complex spatial behavior at each iteration.
I haven't thoroughly read all of Levin's papers, so I'm not sure to what extent they specifically address the issue of whether textbook models of morphogen gradients can or cannot account for these experiments. I'd guess that it is difficult to say conclusively. You might have to use one of the software packages for simulating multi-cellular development, regulatory logic, and morphogen gradients/diffusion, if you wanted to argue either "the textbook model can generate this behavior" or that the textbook model cannot.
The simulations/models that I'm familiar with are quite basic, relative to actual biology, e.g. models of drosophila eve stripes are based on a few dozen genes or less. But iiuc, our understanding of larval development and patterning of C Elegans is far behind that of drosophila (the fly embryo starts as a syncytium, unlike worms and vertebrates, which makes fly segmentation easier to follow). I haven't read about Xenopus (the frogs that Levin studies), but I'd guess that we are very far from being able to simulate all the way from embryo to facial development in the normal case, let alone the abnormal picasso and "eye on tail" tadpoles.
[1]: https://direct.mit.edu/isal/proceedings/alif2016/28/100/9940...
Michael Levin best posited for me the question of how animal cells can act cooperatively without a hierarchy. He has some biological experiments showing, for example, eye cells in a frog embryo will move to where the eye should go even if you pull it away. The question I don't think he could really answer was 'how do the cells know when to stop?'
Understanding non-hierarchical organization is key to understanding how society works, too. And to solve the various prisioner's delimmas at various scales in our self-organizing world.
It's also about understanding bare complexity and modeling it.
This is the first time I've seen the ability to model this stuff.
So many directions to go from here. Just wow.