Coat, Sword, Cloak....Hobbit?

[Kuruharan]

I'm sure he was trying to cover up the fact that a "mere" halfling had escaped from one of Sauron's strongest fortresses.

I'm pretty sure that Shagrat was more concerned with blaming Gorbag for the entire fiasco than with presenting a decent report.

I rather suspect that Shagrat was put to torture to punish him for his failure and to make sure he got his story straight. (It's what I would do if I were Sauron). Remember that the tracker said that Shagrat would not be a captain anymore, maybe because he would not be alive anymore. I think that it's safe to assume that one way or another Shagrat gave an accurate report, Sauron does not seem the sort for someone to lie to and get away with it.

And evidently there were some Morgul orcs got out, so Sauron would also have the stories from them.