This overlooks a key detail, namely interlacing. The C64 wasn't producing 60 frames per second, but rather 60 fields : sets of odd or even scanlines. So on the CRT TVs of the time, you'd get one colour on the odd scanlines, and another on the even scanlines. Scanline striping, essentially.
I was under the impression that there must have been some additional signaling to make interlacing happen. If for no other reason than the display would need to know which frame was the upper scanline and which was the lower. Apart from the fact that they would have advertised the increased resolution (albeit flickery). On the Amiga, which did do interlaced modes. you could tell on a screen showing a single colour wh…
The monitor doesn't "know", in that case. The interlacing is simply a physical phenomenon. Later digital capture devices must recognize this situation and handle it appropriately. Many assume it's always happening, as progressive-scan 252-field NTSC is out of spec anyway.