It's a fabric piece - you can see the weave on one side, and the reverse is some kind of smooth coating?
The colour is brownish on the "weave" side, and brown-greyish on the "reverse" side.
My first guess was that it's some sort of clothing piece - but the hole placement makes me think it isn't - can't work as a cape, and can't fit minifig arms through both at same time.
Any ideas?
Comments
RE the twisting together - the capes of that type have additional cuts to allow that (eg: https://www.brickowl.com/catalog/lego-standard-cape-with-regular-starched-texture-20458-50231) but this one doesn't
Something like