Yepp. The knit cuffs and hem look surprisingly good for that age. They even seem to feature some pilling which AFAIK is a feature of modern (semi)synthetic fibres. What I saw might also be an artifact left from poor image processing, though.
As for the lining having been replaced or not, or the leather being softened, I don't know. Nothing has been told about if the jacket has been used after Hofer's death. If it was put into naphthalene in '44 and stored in a dry place, only the leather would have suffered from getting too dry. As the description said, it was terribly stiff. As a reference, I bought a M39 Swedish Army Backpack, the latest of which were made in the '60s. Brand new, but the leather parts were very hard and brittle and the rivets were oxidized. Also, the canvas had a smell of mildew. A machine wash and a couple of treatments with leather balm fixed all issues.