The muted luster is what holds it back. It's easy to forget that of the four primary factors for grading mint state coins (strike, luster, contact marks, and eye appeal) luster is generally the most important. As a coin starts to show wear (dropping into the AU range) the luster is progressively diminished. The amount of luster that remains is the primary determinant of which AU grade applies.
The OP's coin has excellent remaining detail, nearly MS on the reverse and choice AU on the obverse. However, only traces of luster remain visible around the stars and legend. This "defect" might be the result of circulation or from an old, too-vigorous dipping. Either way, in my opinion the minimal luster is what justifies the AU-50 grade.
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