This is definitely NOT ok.
If somebody does not like Photos (default app for JPG in Windows 10), then he/she can change the Windows settings - it will bring the desired behavior to all other use-cases consistently and TC does not need an arbitrary hard-coding. TC has no right to be "smarter" than the system settings, especially when this does not even seem documented.
The fact this hack can be disabled via a hidden wincmd.ini option ReplacePhotoApp=0
makes even less sense - I just lost 2 hours of my life trying to solve what I thought to be a Windows 10 problem, until accidentally finding a comment about this in German part of this forum.
If it is felt this "feature" has a value, add an option like "Force Windows Photo Viewer" in TC Configuration dialog, by default UNchecked - and yes, the ugliness and arbitrary character of such an option does represent its true nature... There is no point in it in the first place.

Please, fix the bug and _honor_ the default file associations for ALL types.