ErnoidHK88 This is getting interesting...
I was able to identify some of the albums associated with the Key Photo in the People Album and decided to just sync a few of those albums with the addition of an album that didn't have anyone noted in the People Album, let's call it X Album. I also thought that there may be a link to this problem with photos used for the image in Contacts. I edited my contacts with faces from my iPad Photos because I could scale the picture easier in the iPad version. My contacts are shared with my iMac and all iDevices.
I prepared for a sync by "removing" the photos and selected the same albums. Of the six albums, five had the "Syncing.." note at the bottom of the the album on my iPad. This supports your idea. The X Album sync'd properly no message at the bottom.
I then edited a contact with a photo from the X Album on my iPad. Sync'd again. Initially the X Album did not have the "Syncing..." note but a few moments later it appeared! At least that's what I think happened. It confirms your thought about latent processing.
I also checked the photo count of an album that has "Syncing..." and noticed that on the iPad, a photo was missing. Accounting for photos on my iMac to the iPad I determined it was the photo used for the face in the People Album.
It appears "Syncing..." appears at the bottom of the album when this situation is encountered. If the album syncs properly and photos only take up one page of my iPad, no note appears. If there is more than one page of photos being displayed on the iPad, a count of photos and videos appears at the end of the album.
I have not experienced the duplicates or blank photos. I my not using iCloud photos or Photostream. I normally migrate any photos taken on an iDevice and import or AirDrop to my iMac, then delete from iDevice. I put the photos into an album and eventually sync desired albums to my iDevice. I use the iMac as my repository for photos. I also keep a copy of the albums as a separate folder in Documents as one of my backups.
Thanks for your hypothesis as it helped me understand some of the peculiarities.