The TPGs are being tougher on
Peace dollars than they were 4-5 years ago, but nothing like they were 10-12 years ago.
Your coin's obverse has a few scratches and dings. There is a long scratch from just below the lips to the hair, a scratch to the left of the nose, a series of small scratches above the eyebrow, another from the nose to the hair, and some knocks in the hair bun left of the "Y." These aren't heavy contacts, but they are in visible places. A couple years ago, these would have been shrugged off a bit, but all three TPGs seem to weigh them more heavily now. IMHO, the obverse would land on the MS-62/63 bubble today.
The reverse has a few knocks on the eagle's right wing and one on the right leg. There is something going on near the rim around 10-11 o'clock, but I can't quite make it out. The location of the dings is a bit tougher on the reverse. To my eyes, the TPGs would hold the reverse to MS-63, maybe 62 depending on the issue near the rim.
Overall, I could see your coin landing either in an MS-62 or MS-63 slab today. Four or five years ago, this would have graded a notch higher. That said, PCGS likes toning, and that could also affect how they saw the coin.