This game was an enigma for a long time, but some investigation has revealed that it's most likely a very early prototype of an obscure Konami fighting game, Martial Champion. This is most readily evident with the first character one sees, with some unused graphics in the ROM revealing his name is "Avu". A character featured in Martial Champion has the same name and a similar appearance:
The other two (non-corrupted) characters are a bit tougher to pin down, but the blonde guy bears a resemblance to Jin:
And the strange mohawked woman more than likely became the character called "Bobby".
Source: The Spriter's Resource pages for BB and Martial Champion
In addition, the one identifiable background does resemble one from Martial Champion.
So there you have it. I think it's a pretty safe bet that this is just a odd, barely-functional prototype that somehow found its way into the hands of a private collector and was dumped to the internet for everyone to puzzle over. But regardless, it left an impression on me.