Like many other RTR rallycross buggy kits, the Losi is just one that comes with a larger engine. In this case, the engine is the same one that they have used in the LST monster truck kits.
It is too large for BRCA santioned competitions but there is little gain to be had by running one so I believe many clubs dont enforce the rules too stringently.
The power on offer from a .21ci compared to the Mach 427 (4.27cc) which is a .26ci is plenty and even truggy racers are installing .21 engines over .28 engines that are legal for better fuel economy and smoother power.
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