In fact, if you check the file, it says "(c) Brian King" in the header, and it does not have the usual GPL clause on top. So it's really questionable in which state this file is, and whether you are allowed to derive any third party work from it.
... and if you check the software it's included in and partially builds on (UAE and WinUAE) they are GPL licensed. You don't have to include license information in the source file for it to be enforceable, nor is GPL and copyright mutually exclusive. In fact, GPL builds on the foundations of copyright to be enforceable, and in most of the world it's impossible to even disown a work in terms copyright by other means than transferring the rights.
I agree with you that this project may belong in some sort of legal grey area, but that a file that was contributed to a GPL project has a copyright notice is not grounds for suspicion that it wasn't the intention of the contributor to release it under GPL terms. The license of the work is in the README file of the UAE repo.
Whether he was allowed to release it under those conditions in first place is a different question, of course, but at this point all the indications that the development of the Picasso 96 UAE code are in breach of some other contract are rumors and hearsay. It must be easier to get in touch with the proprietor of the official development kit and Brian King to resolve this, right?
Also,
Hieroglyph,
If your code is indeed based on the GPL licensed (Win/)UAE source code, you can't simply re-license it under LGPL without express permission from its contributor(s). I don't know what you think is particularly impractical about the GPL for Amiga, anyway. All you need to do is make sure that the source of any application based on it is available to anyone with a copy of the software.