If you're asking about the ring on the 1940, that's damage from a rolling machine. We can help more if you provide clear pictures of the whole coin without glare.
Well that changes the look a lot better. But the missing ribbon on the que is just die polishing that removed that area. Pretty common to find these a lot weaker. But circulation has worn down the tops of the devices. I'm not sure what light source you are using, but the 1939 setup was a lot better. More overhead over the coin. On the second set of images, the light source was too low, making the harder edge glare. When you get image editing software, you can fix issues with images.
The 1938 S is one of those nickels you'll rarely find in circulation, even a few decades ago where the occasional 1938 would pop up, you wouldn't see a 1938 S. This is a semi-key date and the ones you see in Whitman obverse only showing booklets usually have lesser coins filling the holes than your coin. Not the greatest but worth a couple / few bucks.
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