Once again, the bozo crew must have been hard at work here.  They installed a new ceiling but didn't bother filling and smoothing the edges.  I guess they figured covering it up with the cheapest, ugliest moldings known to man would be okay.  The lesson learned here is that if you buy a place that was once a rental unit, don't expect to find anything but the fastest, cheapest solutions imaginable.
Also, note the navy blue molding around the closet door.  That's chair rail molding and a cheap grade at that.  No finished corners.  Not even 45º angle cuts at the corners.  Talk about a rushed job!