No, that sort of thing isn't that weird, in relatively young companies. Think of when Eric Schmidt was CEO of Google. Larry Page and Sergei Brin reported to him as employees of Google, and he (as CEO of Google) reported to himself-and-also-them (as the board), and all of them (as the board) reported to Larry and Sergei (as majority owners).
For another example, imagine if OpenAI had never been a non-profit, and look at the board yesterday. You'd have had Ilya reporting to Sam (as employees), while Sam reports to Ilya (with Ilya as one member of the board, and probably a major stakeholder).
Now, when it gets hostile, those loops might get pretty weird. When things get hostile, you maybe modify reporting structures so the loops go away, so that people can maintain sane boundaries and still get work done (or gracefully exit, who knows).
