Right, it's quite obvious that the memory is not being stored bit-for-bit in exactly the same way because if you ask the person what they saw after the experiment, they will be able to recall the difference of "lines" or "dots".
But the paper is explicitly looking at the representation in working memory; so two obvious possibilities are, one that the "orientation" and "dotness vs. lineness" attributes are being decoupled and stored separately in working memory (different "registers" if you will). Or the "dotness / lineness" is getting stored somewhere else (not working memory, some other memory system) because it's not "behaviorally relevant" (i.e. relevant to the task that the participant is attending to while creating the working memory). I'd guess at the first because my impression was that essentially everything that makes it into episodic memory starts in working memory, but I'm not a neuroscientist.
I think the OP is getting way ahead of itself with "The findings suggest that participants weren’t actually remembering the grating or a complex cloud of moving dots at all.". The paper is making a much more modest claim that "direction" is recorded in the same underlying way, specifically during a task where you're being asked to recall direction. It's completely possible that this intermediate/common representation would not be generated if you're just looking at the pattern and not performing a task related to direction.
I couldn't find the full paper on SciHub, just the abstract linked in the OP: https://pubmed.ncbi.nlm.nih.gov/35395195/. I'd hope the full paper talks about all this in more detail.