@@Michael McKevley
The problem is the VIN inspection. The vin number matches the title (Arizona) , but the description on the title is 1972 VW. The lady inspector was baffled, so she called in a HP officer. He said the VW had been modified and a new title would be required reflecting the “appearance” of the car.
That's what I went through in Massachusetts (Our DMV uses much of the same software as other states). My Speedster was titled and registered as a '69 VW convertible which didn't look like what it actually was, so when they changed the laws and installed a watch-dog agency to oversee annual inspections here, I had to re-title and re-register as a '57 Porsche 356 Replica. Your state may require that you title it as a "Kit Car" if they use the latest software, so ask what the differences are between a "Replica" and a "kit car" and go with what they recommend. While the states may be different, the process (and order of steps) is about the same in just about every state (because they all share similar software).
You first have to get it re-titled as a Replica vehicle. This is best done by contacting your state's main/head titling office, since they will see more of these cases than a local office, and for them it should be no big deal. It's best if you can go there in person, with phone calls as a distant second best. Bring a few photos to help the process along. They will have any and all DMV forms you'll need right there.
Once you have the new title, you can then approach the biggest DMV office in your area (or one recommended by the title folks) to get it registered as a replica or Special Construction Vehicle, which-ever their process allows. Don't go to a local office as they probably have never seen a case like yours. If both the title office and main DMV office are in the same city, then go there and get most of this done in one day. This will also require an inspection by your state police as directed by the DMV office - They mostly look to see if it is safe and whether any stolen parts were used in the construction (which is made moot if it was built by a company like Vintage). They will probably issue you a new VIN reflecting your new title/registration.
Once all that is done, you'll probably need your first annual safety inspection. If you get it titled/registered as a '57 Porsche Replica, in most states that should waive an emissions test, you get your sticker and are good to go. I recently had to change from "Replica" to "Kit Car" in the DMV database (no new title or registration) to satisfy their most recent software changes, but other than another safety inspection, no big deal.
My case (and others) was documented on here, so do a search on my username and "Registering in Massachusetts" or something like that to see what I had to do.
Hope this helps, and GOOD LUCK!!