Here is what I know- it is in only the older dolls made from one manufacturer (probably Gotz) and happens to about 10% of the older dolls. AG will replace the head for free but when I called and spoke to a fab. customer service rep she told me if it did not bug me too much to just leave it alone as it could possibly make them more collectable. Most people send them back so the ones with the defect uncorrected make them all the more rare.
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