That's CP0's work dude... they're the best at infiltration... no rose up or bullshit.
They can obtain all they want, identities, money... so it's not hard to prepare a masquerade like this one.
Maybe, Stussy could even killed the previous "Red District Queen" and that's all, but cannot confirm...
Dude... it's a fake identity to infiltrate. She really is a CP0 agent, nothing more.
Same as Kuzan, who is now into underworld and allied with Blackbeard, BUT he really does not fit here because he is still a good guy.