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How does this even happen? Is there some system automatically blasting out promotions based on a list of notable calendar dates?

Can we expect to get KFC coupons on September 11? How about a free side of mashed potatoes commemorating the Watts riots, or 2 for 1 meal combos on the anniversary of the Chernobyl disaster? Reach out, KFC marketing people--I'd be happy to come on board as a consultant.

It's automated, like most DCO/DCP tools they are primarily done for the American market and lack "sensible" defaults for other markets.
I don't believe it. It seems much more likely to me that this was the intent of some individual at KFC and they are blaming it on the automation. I'm sure they have automation, but this reeks of intentional sabotage to me.
every publicity is good publicity

   How about a free side of mashed potatoes commemorating the Watts riots
I have to admit I'm a sucker for their mashed potatoes. I think I'd be willing to overlook the faux pas.
This is why you don't blindly let AI push ads without an actual human watching over it. The machines don't recognize evil which is by design since if they did they'd refuse to work in marketing.