The "Membership Report (Lapsed)" report does not filter out deleted contacts.
The "Membership Report (Lapsed)" report does not filter out deleted contacts and has no way to specify filtering out deleted contacts.
This means that e.g. merged contacts where the membership was not moved, such as when an existing membership in the target contact, will show up in the report, confusing end users.
Agileware Ref: CIVICRM-1520