If you follow the NPC after completing the Queensdale event where you escort the Pygmy Moa handler to the Beetletun carnival and watch the exchange, the moa handler responds with the above line after the carnival lady calls the moas “scrawny.” It is obvious that no contextual notes were provided to the voice actress, and since the writer just used a comma (rather than “Not scrawny . . . Pygmy!” which is maybe how it should’ve been written), the VO artist spoke the line as if addressing someone named Pygmy. It sounds bad, and should probably be re-recorded at some point.
Just noticed it earlier today and thought I’d let the audio team know.