why are they called pencil crayons in canada?

Canadian here, and I can confirm that, while admittedly I have never seen a product list itself as a pencil crayon in Canada, we all agree that’s what coloured pencils are referred to as in conversation.

Now, certainly more research could be worth doing but, I have a theory… see, our packaging is mandated bilingual, and usually english first:

See how it reads as one long title?

Well, now, imagine kids throw that around for a bit till the verbal greebling is worn off:

Dunno what the official history is to this, linguistically, but this has been my working theory for some time.