The "leather armor" templates in the Muhar hideworker's have the base stats of padded armour.
Where: Har'akir - Northern Desert - Village Of Muhar - Hide Worker's House
What: Here is a screenshot of the item in question. It gives 1 base AC, and has a max Dex limit of 10, like padded armour does, when leather should have 2 and 7. The padded armour templates there have the exact same 1 and 10 stats, so it's not like they've just been switched around accidentally.
When used to make it armour, it uses the ingredients required by the leather armour template recipe, like it should, but it still keeps those 1 and 10 figures, and retains that cheeky "leather armor" name.
It should be a pretty simple fix, I think? Just switch out the template in question with one from another leatherwork vendor, and maybe give it a recolour so it matches the Har'akir aesthetic.