Are the Hungarian AKM over-gassed? Why do they have the gas venting holes on both block and tube?

typically dont have both... either it was over gassed and sombody tried to fix it or swapped out the part... dont thing i have seen them with both other then some home budget builds...

The vent holes don't regulate gas pressure. I'd guess that someone just used a type 3 gas tube on an AKM.

It's large scale. In fact, all factory Hungarian AK's sold in the US including Kassner pre-ban and K.B.I. post-ban had the vent holes on the gas block and the gas tube. It's almost like a Hungarian AK trademark. Had me puzzled. I'm still looking for a reasonable explanation.

I know AK's are very forgiving. Is there a problem with such setup?

No. You could remove the gas tube entirely and it would still cycle.

Its true all the old original Kasner and immediate post-94 imports had this.  I swap for a russian gas tube when I am swapping out the furniture anyway.  Great rifles and until recently, a great deal could be had on the pre-94 Kasner imports these because it seemed that most people just didn't appreciate what it really was.   Full factory / milspec AKM manufactured in a communist country before the fall of the Berlin Wall - complete with F/A bolt carrier serial numbered to the gun.  I have a fixed and an underfolder.

I have the underfolder. It's a very nice representative piece of the Russian AKM. And, it's a factory built gun. I don't care for the funky factory stock set either. Swapped them out as soon as I received the traditional looking parts. (I still keep the original factory set for the future.) I've had two post-ban (the blonde thumbholes) and two pre-ban. I'll hang-on to the last one I have. If I let it go, I won't be able to find a fifth Hungarian. I may find one, but a huge price tag for sure that is out of my reach.