Not an error. It's PMD. The copper plating and surfaces were scraped off in some areas. Might have been sanded down or it might have got stuck in a dryer. Who knows what happened to it. At the end of the day, damage is damage. You can safely spend this one.
It is only an error if it happens when the coin was struck at the mint. Seeing there is no way for that to happen at that time, it is PMD, no matter what the cause.
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