the church would of course baptise illegitimates - it was the parents who had 'sinned' not the child - however baptism might well have been in for example a Methodist chapel (or not taken place at all) as the old need for a CofE baptismal record to prove parentage had been replaced by the civil registration that started on the Island in late 1870s.
Familysearch like the old IGI has many errors, some being unwarranted assumptions such as the incorrect linkage of two similar named individuals (the Manx until quite late in 19th C were very conservative with their use of first names!