Is this a bug? Or are we getting hit by a bot? Or is it possible that the system is not pulling the correct Visitor IP and is defaulting to this generic one?
If all your visits are coming from one IP this is an indicator that your Webserver (with Matomo) is running behind a reverse proxy and therefore Matomo only sees the IP of the reverse proxy.
Take a look at How do I configure Piwik when the server is installed behind a proxy? FAQ - Analytics Platform - Matomo for how to configure Matomo in this case.