ps2pdf doesn't convert Type42 fonts properly if the font's OS/2 table is at version 3. Instead of embedding the font as a TTF it is embedded as Type 3.
Created attachment 2175 [details] Type 42 font with OS/2 table version 1 (PS)
Created attachment 2176 [details] Type 42 font with OS/2 table version 1 (PDF)
Created attachment 2177 [details] Type 42 font with OS/2 table version 3 (PS)
Created attachment 2178 [details] Type 42 font with OS/2 table version 3 (PDF)
The current HEAD appears to work fine with attachment 2177 [details]. A possible reason is the fix for Bug 688536. Closing with worksforme.