What do I love about nitpicking animated films? The fact that everything on screen had to be drawn or created as a 3D CGI model. In this instance, it looks like the artist responsible for the props used the same wireframe for the sign but neglected to flip it the correct way when adding the new texture.
This explanation serves for reality. Nitpickers demand more. Therefore Shrek is using enchanted paint that magically rotates and flips the sign.
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