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This added vulnerability is aimed at playing with image recognition/OCR to guess/identify bad CAPTCHA codes. As opposite to "Insecure CAPTCHA", there's no vulnerability on the validation logic but instead the CAPTCHA is generated using weak configurations.
It also has the advantage that can be used in isolated environments where the DVWA doesn't have Internet access and ReCaptcha can't be used. The library used is https://github.com/claviska/simple-php-captcha (MIT license).
Let me know if you think it would be a good addition or if it need some aspect to be worked on. Otherwise I left it here for if someone else has a requirement similar to this one.