The contradictory part is that it makes several explicit references to the PHP project itself, which make no sense if applied to a project which is not PHP. In fact, this license explicitly says "THIS SOFTWARE IS PROVIDED BY THE PHP DEVELOPMENT TEAM" which is patently false for any software besides PHP itself.

The problem is that lots of other projects need to apply some license, and just for simplicity say "I'll just apply the PHP license," even though it makes absolutely no sense for anything but the PHP project itself.