It doesn't need to recreate your game. It can still muddy your marketing and redden the ocean. Especially if someone is in the business of trying to front run an indie game, they don't need to be any where close to a full or good game to attempt to steal any mindshare your project had.
Is this happening at any significant rate?
AFAICT this is a fear that some game developers have, that someone will steal their game and run with it, and the stories told are more repeated based on this shared fear than based on realistic scenarios. People repeat it because it’s a good story.
And yes, I’m aware of some situations like 0x10c and the like.