The Bug:

You can still equip the dummy as a classic skin. MCPE-181689 ended up getting incomplete, so this report was created.

Steps to Reproduce:

1. Create a new character. It has to be a classic skin. If your character slots are full, delete any character first.
2. Click on the dummy skin that is used for custom skin selection.
3. Go back to the skin selection screen.

Observed Results:

You were successfully able to use the dummy skin and use it in gameplay. 

Expected Result:

The dummy skin is normally reserved for an example for custom skins, so you should not be able to use that skin in gameplay.