I have had at least 6 different 1954 truck titles from the states of Oregon, Washington, and Virginia. The titles used either the Engine Serial Number or the Vehicle Serial Number. In two of those states, VA and WA, either of those Serial Numbers was used for different trucks.
My guess is that whichever of the two codes from a new truck was given to DMV (or the County Clerk's office) by the dealer, that SN was put on the title. Unless: the state had an official first-hand look at (observe) a specific code (from a specific location).
I cannot figure out why an engine code would be used as an ID, except that a ID code-plate could more easily be fooled-with than could an engine?