I never said it won't work but it's going to have possible film flatness issues, but then it was a budget camera anyway and film flatness was a problem with many cameras which it competed with at the time and particularly the Instamatics introduced slightly after. The way there's no film rollers either side and the wide rebates would indicate that even with a pressure plate on the back it would be difficult to hold the 120 film flat.
Originally Posted by ChristopherCoy
It's just a rather strange design, why would you design a camera to shoot a 127 half frame size on 120 film, but as others have said one body for various film sizes would keep manufacturing costs low. They are often refered to as Toy cameras.