This is actually fine. "Palm" camo wasn't strictly used for tropic areas and was one of the early widespread issue patterns and there are several period photos of the 1SSLAH wearing Palm camo, in the snow. PLAUSIBLE

I would say it was meant for an italian campaign but i fail to find any real camo similar. Theres lots of unused, textures in the game, a great example being the completely unused snow camo, and even summer varient short sleeved shirts.

What unit could this camo originally be for I wonder