Those look like #2 pine. I could be wrong,..I don`t see enough wall area. A better photo for me would be, six feet back, on a corner, showing two walls. Unless your home is round !!
Not being squared indicates #2 grade. These have a rough side and a smooth side, and have different, mixed heights. The rough side wheathers better and is for stain or semi solid stains. Paints dont do well on rough sides. The smooth side is for paints, and has a better appearance. The smooth side soaks in water evenly. Uneven soaking (rough side) will prevent expantion better.
#1 grade R/R,...will be square on all four sides, the same heights, and plained on both faces.
If the installer does not take care to show the same feace uniformly when installing #2 grade, you end up looking like sh*t, or like the photo shows,...mixed installation. Joints shoud be staggered 1" minimum, and never one above the other.
I also see what appears to be more than 4" exposure. This will be a problem IF the heights are not the correct size for the exposure. 14"...17"...20",... are examples of heights. The height of a shingle dictates the exposure. A shingle MUST go under TWO rows above it and 2" under the third. This keeps the wall plumb. Curling, cupping, warping, and leaking, will happen real quick if the exposure rules are not followed.
Never...ever...ever, use sidewall shingles on roofing. They make different shingles (3/4" and 1" butts) for roofing.
You can use a 120 grit sandpaper, up and down on the shingles that have too much, to remove the bulk of the wooling effect on the rough side out. The mill or paint factory wont do that. but you can before applying the second coat.