I've seen this happen before on AWD cars where the axle isn't seated all the way or the splines get slightly stuck or crooked because of corrosion. The axle nut can have a lot of friction on an old axle, and a lot of the torque goes into thread friction instead of bearing preload. The axle can then slide along the splines or unstick, etc., after time or with vehicle weight, so now you've got a loose bearing with full vehicle weight on it.
There's not much else explanation, other than the bearing being made too short and the nut bottoming out on the axle so there's no preload. If it was something like a bearing race failure, you'd see broken races which I don't see in the picture.
Either way, there was some reason that there wasn't tension on the bearing, and it would have had to be a huge amount of gap between the races to make the rollers shift enough to feel like the hub assembly was going to fall off in your hands without visible fragmented races.