How he was that

[Xinfu]

p.298: There was a famous man now called Carmichael, she smiled, thinking how many shapes one person might wear, how he was that in the newspapers, but here the same as he had always been.

What do the red words mean?
Is THAT optional? Or is THAT a pronoun?

[Rusty]

The word in question is a pronoun, standing for what 'shape' the person wore.
The pronoun should be used.

[Xinfu]

Thank you.