I'm trying to understand Sai Baba's religious identity. What does Chapter 7 say that makes it so hard to classify him as either Hindu or Muslim?

Chapter 7 of the Shri Sai Satcharitra deliberately illustrates the paradox of Sai Baba's religious identity to show he was beyond such labels. It states that if you called him a Hindu, he looked like a Muslim (Yavana), but if you called him a Muslim, he bore the noble marks of a Hindu. More concretely, he lived in a mosque, a Muslim practice, yet he kept a sacred fire (Dhuni) burning there continuously, a Hindu custom. The chapter also points out the physical contradictions: his ears were pierced like a Hindu, but his circumcision was evident, a Muslim practice. These conflicting signs show that his incarnation was holy and transcended both religions.