It's certainly looking that way, originally one could have said it was for Rydia but we now know she was going to retain white magic, leaving her with no empty slots.
Well, I have a cool, crazy ass, and imaginative theory.
This command was supposed to "Mechanize" the monster. When used, the monster gets the Mech attribute. That way, the hammers Cid uses don't look silly.
These bits correlate with the Ogre Axe/Hand Axe, Hammers, and Lit Arrows. These bits would "enable" this command to operate.
The Ogre Axe was probably meant to be found at the Magnetic Cave (or maybe even Cave Eblan).. but was retweaked for whatever the reason.
Your wish is my command!
Peep - Mechanize
New Code...
03E195 - BD 40 27 (LDA 2740 x7E2740) - Load Target's Creature Type'
03E19F - 20 A2 E1 (JSR E1A2) - Jump to rest of routine.
03E1A2 - A9 02 (LDA 02) - Load 02 into A
03E1A4 - 8D 40 27 (STA 2740 x7E2740)- Load 02 into Monster Type, replacing other types with Machine.
03E1A7 - E9 00 (SBC 00) - (Ideally would be a message, but I'm not sure how to do that but this remnant code shouldn't cause an issue.
03E1A9 - 60 RTS (Start the doubling back process early so as not to include now worthless instructions).
And since Peep doesn't work on Bosses in the first place, it shouldn't work here either.
I can't say I know how Weapon Properties Work, but you can make the command only limited to be used with Hammer (in replace of Sing's two-handed necessity preferably) as I showed
here.