It turns out the mode of this example image is already RGB
even though the image appears to be grayscale. If you don't try manual rescaling first, the pillow conversion works fine:
from PIL import Image
im = Image.open("example.tif")
if im.mode not in ("L", "RGB"): # rescale 16 bit tiffs to 8 bits
im.mode = "L"
im = im.point(lambda i: i * (1.0 / 256))
im = im.convert("RGB")
im.save("example.jpg", "JPEG", quality=100)
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